From politics to weather, plenty of factors can impact the foreign exchange market and currency exchange rates. While we can't predict exactly how these factors will impact the market, we can look at what’s happening around the globe and speculate how these events may affect currency markets.
To keep you up to speed, we’ve created a snapshot of what's been happening in the world of foreign currency. If any of these changes have impacted your travel plans,, our Travel Money FXperts will gladly provide you with any further information.
#1. The Trump Factor Continued
The USA tends to make headlines for its turbulent political situation on a regular basis, mainly due to President Trump's behaviour. From his posturing with Kim Jong-un to his Twitter rants, it’s hard to pinpoint which of his antics are having the biggest impact on the US dollar.
This instability is making for a rocky time for the USD. But you'll need to watch this space to see how it impacts directly on your foreign exchange.
#2. Terror Attacks
Several European countries have been targeted by terror attacks in the last few years, including the UK, Spain and France. Beyond the threat to security, there is another aspect to consider – how these geopolitical events have impacted currency markets.
Post-attack, the value of each country’s currency suffered damage as investors were put on edge. The markets seem to have recovered for now, but nerves are still raw with uncertainty. If you’re trying to decide how much money to carry in Europe, it’s worth taking the risk of terror attacks into consideration.
#3. Jackson Hole Symposium
Each year, top central bankers from around the world gather for the Jackson Hole Symposium, a conference focused on economic issues affecting global markets. In 2018, the symposium was based on changing market structures and their impact on monetary policy. It's unclear how markets will react to this year’s event, but investors are likely to be keeping a close eye on proceedings.
#4. Digital currency rush
Forget the gold rush – we’re living in the age of the digital currency rush. Thanks to advances in e-commerce technology, digital currency is fast becoming a significant factor in how people spend their money while travelling. In 2017, 35 retailers in Cairns took part in a trial where they allowed customers to pay with a new form of currency called airBux, via AUD physical currency.
Available through an app, customers can use airBux to pay for anything – including food, tours and admission fees. They can also earn loyalty points that are converted into cash. While airBux is just one example of how technology is changing the way we think about money, the digital currency trend looks like it’s here to stay.
#5. New $10 AUD Banknote
Released in September 2017, the new $10 Aussie banknote offers the same features found in 2016’s new $5 note. This includes world-leading security benefits such a clear top-to-bottom window, a rolling colour effect, a reversing number 10, and a tactile feature so the note can be recognised by vision-impaired members of the community.
The note's design features two of Australia's biggest icons - prominent writers Dame Mary Gilmore and Banjo Paterson. While a new note design might not sound like something that would have a huge impact on currency, it’s still a newsworthy event.
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