GBP to AUD forecast: The next 7 days could have a major influence on the future of GBP/AUD exchange rates as Theresa May is doing everything in her power to convince Conservative MPs to back her Brexit deal.
Over the last 6 weeks GBP/AUD exchange rates have been dropping like a stone. Currently the currency pair has fallen 13 cents and the likelihood is further falls are on the horizon up until December 11th.
December 11th is arguably the most important day for the UK economy since the Brexit vote itself over 2 years ago. If Theresa May gets the backing from fellow MPs than you would expect the pound to rally against the Australian dollar, therefore clients that are selling Australian dollars to buy pounds, could this be the best time to buy pounds for a long time to come?
However if Theresa May fails to get approval from fellow Conservative MPs then I believe her reign as Prime Minister will be coming to an end. I’m confident she will try to renegotiate a deal with the EU, even though head EU negotiator Michel Barnier has warned that there will be no more negotiating and therefore concessions. However after a week with no breakthrough further pressure will mount, which could force a vote of no confidence or a resignation.
It’s not just a vote of no confidence that the Prime Minister should be worried about. The DUP threatened last night that they would abandon the PM if she failed to get the Brexit deal through on the 11th. If this was to occur and she lost a Commons majority then the UK would be facing a general election, which ultimately mean anything could happen in regards to Brexit. In the medium term the uncertainty would cause further problems for the UK economy.
It’s clear to see that the vote on December 11th will have a major influence on GBP/AUD exchange rates. If you are buying property in the UK using Australian dollars or vice versa, I would strongly recommend getting in touch to discuss your options and together we can form a strategy that works for you.
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