The pound to Australian dollar exchange rate has been testing some of the best levels since before the EU vote June 2016. Brexit is however far from settled and we could easily see some big changes in the currency markets soon. Positivity from Brexit could easily see the GBP/AUD rate top the 1.90 level, whilst the threat of no-deal Brexit could sink us back below 1.80.
This week has seen the pound to Australian dollar exchange rate drop back slightly from the higher 1.80’s and the 1.8830 reached on the 14th March, as Theresa May’s position remains very much under threat. There is currently uncertainty over whether or not she is likely to have her job at the end of this week!
Pound to Australian dollar forecast
The outlook for GBP/AUD rates is very mixed as we approach the finality on Brexit. Much will hinge on what lies head for the rest of this week. Theresa May is supposed to be having another ‘meaningful’ vote although these appear to be quickly becoming meaningless in my opinion.
Last night parliament voted to take control of the some of the next stages which could open us up to a second Referendum or General Election. Mrs May is still determined to have her vote but it is looking increasingly like she will struggle and in any event it will be voted down.
Clients expecting some certainty this week on Brexit will now find the dates of the 12th April and the 22nd May more interesting. These are the dates given by the EU as an extension. The latter date being conditional on Mrs May’s Brexit deal being passed by the Government, which is so far not looking likely.
Those buying Australian dollars might wish to use this uncertain time to be making key preparations around what is likely to be a very turbulent period for GBP/AUD rates.
Please contact me if you would like to discuss more about pound to Australian dollar exchange rates and how to protect yourself from excessive volatility. You can send me a message directly using the form below: