Brexit cross party talks break down
UK Prime Minister Theresa May announced yesterday that she will put her Brexit deal to the House of Commons early next month. Over the last six weeks cross party talks have been ongoing and to date they appear to have failed. Members of the Cabinet warned the Prime Minister earlier in the week that agreeing to Jeremy Corbyn’s customs union arrangement would split the Conservative Party in half and it appears that the PM has taken the advice on board. By allowing MPs to vote next month, the message is that a deal needs to be in place in the up[coming weeks or the Conservative Party will move on with or without Labours approval.
PM May needs Labour Party support
The problem the Prime Minister has is that if she doesn’t get the support from Labour it’s extremely unlikely the deal will be approved. Therefore if MPs vote down the deal, the question will be what is next? Reports from Norman Smith of the BBC are suggesting that No10 have confirmed no deal or revoking Article50 are the most likely as the EU will not grant another extension. For clients that are buying Australian dollars, these are alarming times and the announcement yesterday is breaking news. If the UK head towards a crash out Brexit, past history tells us the pound will suffer heavy losses. It was only 2 years ago when GBP/AUD was 25 cents lower than where it is now.
Australian general election
Down under we are days away until Australian’s take to the polls for the General election. Reports from IPSOS suggest that Australians are unhappy with the way democracy works and the polls are suggesting there will be a change in leadership with Labor taking the reigns. Within the election campaigns major topics have been house prices, wage growth stagnation, climate change and migration and again the polls are suggesting that Australian’s want change.
GBP vs AUD forecast
In regards to pound to Australian dollar exchange rates, I am expecting volatility in the upcoming days and opportunity to present itself, however thereafter a concern is the ongoing Brexit saga. Consequently short term Australian dollar buyers should seriously consider taking advantage now or if an opportunity presents itself.
If you are buying or selling Australian dollars and want further information in regards to pound to Aussie dollar forecasts feel free to fill in the form below to contact me directly. I lookforward to hearing from you.