We are witnessing an improvement for Australian dollar buyers with pounds as the good news on a potential deal on Brexit filters through into the currency markets. This has provided the pound with a boost which has seen GBPAUD levels back over 1.80, providing some much needed good news for AUD buyers.
The news for the pound is welcome but it is not definite just yet. We are still waiting for the arrangement to be completely finalised which would present the news that would really see the pound fare better. However, clients expecting the pound to now rocket much higher could end up disappointed.
The Australian dollar has been finding some form and of all the currencies the pound strengthened against yesterday, the gains against the Aussie were limited. This is because of the news that there could be some respite or deal on the trade dispute between China and the US. This is following a tweet by Donald Trump who claimed a deal might be reached and this would provide more certainty in the Trade Wars which will help the Aussie to strengthen.
GBPAUD levels could easily fall back if there really is some kind of better news for the Trade Wars, and China and America can come to terms. Expectations are for the pound to continue to struggle in the future as there is still a huge amount to work out regarding Brexit.
This is not the final deal, it is just at attempt to finalise the exit terms. The real hard talks on trade will be in the future, sterling seems unlikely to perform too well as these fresh questions are raised.
Next week is the Australian interest rate decision which could be a market mover, it would not be surprising to see the Aussie rise as their recent economic data has been better.
If you’d like to discuss the factors impacting GBPAUD rates further, feel free to get in touch using the form below. I’ll be happy to get in touch personally.