The GBPAUD exchange rate has once again seen a boost to its value, with the pair trading as high as 1.8774 in the early hours of this morning. This is also the annual high, which is the highest level seen since June of 2016 which was before the Brexit vote took place and the markets didn’t expect the Brexit vote to actually materialise.
This 33-month high has left sterling sellers in a good position, which may surprise some within the markets as the next week or so could be crucial for the UK economy and therefore the pound’s value. The key vote on UK Prime Minister May’s Brexit deal with the EU is set to be voted on next Tuesday, and the result of this vote is likely to have an influence on the pound’s value.
Gains for the pound have generally been attributed to the clearer path for the UK to leave the EU, now that May’s deal will be voted on before the 12th of May. If she’s unsuccessful in her attempts to push the deal through there will then be votes on whether or not MP’s will accept a no-deal Brexit. There could also be an extension to Article 50 which is another potential outcome, we should know what the next step is by the end of next week.
The Australian dollar has also been coming under pressure recently, with the most recent reason being poor retail sales data that came out below expectations. January Retail Sales down under grew by just 0.1% after initial expectations of 0.3%, and the hopes of a US-China trade deal being announced anytime soon seem to have waned which is negatively impacting the Australian dollar’s value.
With the busy political schedule next week it’s worth being aware of the key dates; if you would like to be updated in the event of a major market movement do feel free to register your interest with me using the form below. I’ll be happy to get in touch personally and discuss your enquiry.