Pound vs Australian Dollar rates have continued to fall during the course of this week as the uncertainty of what will happen next with the Brexit issue continues to negatively influence Sterling exchange rates.
Mark Carney offers gloomy outlook for disorderly Brexit scenario
The Bank of England suggested yesterday that the Pound could fall by as much as 25% in the event of a no deal Brexit and whilst this claim appears to be very bold the uncertainty as we saw with the Brexit vote back in June 2016 caused a huge movement for Sterling, so a precedent of a big fall in a very short period of time has already been set.
With one of the biggest votes in British history (the Brexit vote in Parliament) is set to take place on December 11th. It is important to be prepared for what could be a very volatile period for Pound vs Australian Dollar rates.
The UK Parliament will vote on the proposed Brexit deal which has been agreed between the UK and the European Union so if the deal does not get agreed we could see a huge amount of uncertainty ahead for the UK and therefore Sterling vs the Australian Dollar.
There are a number of different scenarios if the deal is not voted through. A second vote in the House of Commons could take place which would aim to change the current deal and go back to the European Union to see if amendments can be made. A vote of no confidence could occur which means the Tories would need to find a new leader. This would mean that 48 letters would need to be written to the 1922 backbench committee and at the moment this has not gained enough momentum.
Some have even called for a second referendum but Theresa May has insisted on a number of occasions that under her stewardship this would not take place.
With so much uncertainty in the run up to the end of the year any positive outlook for Pound vs Australian Dollar rates looks very limited. If you’re considering buying Australian Dollars in the next few weeks it may be worth getting things organised prior to the vote in Parliament on 11th December.
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