Sterling close to highest level against Australian Dollar since the Brexit referendum

Pound to Australian Dollar Exchange Rate Slides as Hard Brexit Bets Build-Up

Pound Sterling forecast

Sterling has made consistent gains against all major currencies over the course of the trading week and this afternoon has closed in on the highest level we have seen since the original referendum on Brexit.

Most of this movement is down to investors and speculators once again finding the Pound of great interest as the chances of ‘no deal’ Brexit are have decreased.

Prime Minister Theresa May will have up to three votes on or before March 12th which will include a meaningful vote on her Brexit deal initially. If Prime Minister May should lose this vote then there will be a further two votes to come.

  1. A vote to approve or go against a ‘no deal’ Brexit. It is unlikely that this vote would result in approval as there are a number of members of Parliament who have been very vocal in being against this, and this is one of the reasons that the Pound has made great gains.
  2. A further vote on March 14th to offer the extension of Article 50 should ‘no deal’ not be passed.

If the UK make it all the way to the extension vote and that is passed then it opens up all sorts of possibilities, including a long delay in Brexit going ahead or even a second EU referendum.

Those looking to buy Australian Dollars must also be cautious that should a ‘no deal’ be passed or should all three votes not go through then we could actually see a sharp decline in the Pound. If you have Australian Dollars to buy in the coming weeks then it may be prudent to consider your options, including hedging your bets and locking in half of what you need.

If you are due to buy or sell Australian Dollars and you would like our assistance then you are more than welcome to get in touch with us directly. We have various tools and contracts that can help you make the most of the market and we would be confident of better the rates of any other broker, including well known apps and online platforms.

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