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Sterling coming up the outside!


Guest melissa

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Guest melissa

The pound is making a rally against the Aussie dollar. Good news for anyone transfering money. LATEST 2.099.

 

GO ON THE POUND!!:jiggy:

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Guest Pinhead
The pound is making a rally against the Aussie dollar. Good news for anyone transfering money. LATEST 2.099.

 

GO ON THE POUND!!:jiggy:

Shhhhhhh you'll jinx it!

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Guest beermeister

For anyone interested, I've cut and paste sections from the July 2008 report of the Country Risk Service for both Australia and UK, as published by the Economist Intelligence Unit. It paints a picture of weakening $A vs $US, but so also weakening £ vs $US, but to me, it seems like the A$ has a higher risk of being downgraded, so I'm thinking 2009 might be better for £ vs $A. Remember: these guys are supposed to be experts in the field, but often experts are proven wrong!

 

Australia

 

 

The exchange rate has been highly volatile since the onset of the global

financial crisis in mid-2007. This is because the country's large foreign-debt

service obligations make it vulnerable to shifts in risk aversion. Nonetheless, the

Australian dollar reached a 24-year high against the US dollar in late-May 2008.

Its recent strength against the US dollar partly reflects a prevailing weakness in

sentiment towards that currency, but also a reduction in risk aversion among

global investors, which has made Australia!s high interest rates attractive again,

Further gains in commodity prices have also been supportive. We expect the

exchange rate to average A$1.14:US$1 in 2008, compared with an estimated

A$1.20:US$1 in 2007, but it will depreciate on a trade-weighted basis. In 2009

weaker commodity prices and falling domestic interest rates will pull the

 

 

currency down to an average of A$1.30:US$1.

 

 

Although tightness in global capital markets has eased

recently, the Australian banking sector!s heavy reliance on international capital

markets for funds creates a risk that lending to the private sector will be

curtailed if conditions deteriorate again. Finally, the global economic slowdown

could have a more severe impact on the Australian economy than is currently

expected, particularly if it hits Asian economic growth harder than we expect or

causes a sharp fall in commodity prices.

 

 

 

 

UK

 

 

With monetary policy likely to be eased at a slightly faster pace than in the

euro area this year, sterling is projected to weaken against the euro, resulting in

an annual average exchange rate of £0.76:.1. Sterling is forecast to recover some

ground against the euro in 2009 as the economy picks up. Having appreciated

strongly against the US dollar in 2007, sterling is projected to weaken against the

 

 

US currency over the outlook period.

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Guest austibeach

Showing $A2.12197 dollars to the £.........best it's been for a while

 

 

 

and rising by the minute.

 

Having just watched the "live trading" on the currency markets, there is a lot of fluctuation in the value of the $A against the £, but at least the general trend seems to be some movement that will benefit those of you that are looking to transfer your funds to Australia. Of course it can be a bit of a gamble as to the right time to transfer cash, but I for one will be watching with interest over the coming week or so.

 

Eric.

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It's up to 2.1604 now!

 

I'm going to be transferring £10k into my Aussie bank account in a week or two, so I hope it doesn't dip any further.

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