GBP to AUD Forecast: Will the GBP/AUD rate rise or fall in January?

AUD Edges Over GBP as Australia Looks to Ease Lockdown Restrictions

GBP to AUD Forecast: The pound to Australian dollar exchange rates has been very volatile as we begin 2019, rising and falling on various changing sentiments towards both the Brexit and the Trade Wars. The latest news was surrounding the US Non-Farm Payroll data from last week which showed that the US economy is performing much better than expected.

This triggered a rise in the Australian dollar which as a commodity currency, will benefit in times of good news for global trade. The Aussie rose on Friday and has continued to perform well coming into this week, particularly against a weaker pound. Any good news for sterling is often short-lived with the uncertainties of Brexit hanging over the Pound.

2019 is not going to be a quiet year with the unfolding of Brexit and the Trade Wars, probably the two biggest developments in the market to drive the pairing. The improving economic news for the US helped to dispel the notion that the global economy is suffering although other data sets have not be so positive.

Chinese Manufacturing data released earlier this year showed Chinese Manufacturing in decline which saw GBP/AUD hit near 1.82. The GBP/AUD rate currently sits at 1.78 which is 4 cents down from those highs, this move was largely unexpected as many have been predicting the US economy would actually be faltering in 2019, not posting record numbers.

January could see further gains for the Aussie against the pound as next week is the UK Parliamentary vote on Mrs May’s Brexit deal which could be a major market mover. Investors will be eagerly awaiting to see if the deal goes ahead and what the outcomes are.

There is all manner of potentially negative news for sterling from this vote, including a Second Referendum or General Election. The market is likely to view these events in a negative light since it only increases the lack of clarity surrounding Brexit.

If you have a GBP/AUD position to consider, 2019 has started off in typically volatile fashion, which I expect will only continue. If you wish to discuss any strategy or plans relating to an exchange, please do not hesitate to contact me directly to discuss further.

Thank you for reading and I look forward to welcoming any questions or comments. If you would like to discuss anything in my GBP to AUD forecast please use the form below to send me a message: