The pound has been under pressure throughout this month, after testing year highs on the 3rd of May.
Pound to Australian dollar rate forecast
The outlook regarding Brexit is now looking a lot bleaker with current Prime Minister May set to step down in the first half of next month, with the chances of a Pro-Brexit leader likely to take her place which many believe could increase the chances of a no-deal Brexit.
Ever since cross party talks broke down pound to Australian dollar rates have fallen, with the GBP/EUR pair also falling for a record 13-consecutive days during this month and therefore hitting the headlines for the wrong reasons from the pound’s point of view.
Reserve Bank of Australia, is a potential interest rate cut on the horizon?
There has been some disappointing economic data released out of Australia recently and the chances of an interest rate cut have increased so there could be weakness for the Aussie dollar on the horizon should this materialise. Despite this, GBP/AUD has been falling but those of our readers hoping for a stronger AUD should be aware of developments overnight out of the US. With the Australian economy being dependent on a thriving global market the latest announcement from US President Donald Trump could weigh on the AUD, as he has announced intentions to impose a 5% Tariff on all goods imported into the US from Mexico.
This will of course put strain on the new North American Free Trade Agreement which was written up last year, and also the global economy which is why we’ve seen a sharp sell-off in global equity markets since the announcement.
There are no data releases out of Australia until next week now, and feel free to get in touch if you wish to discuss them. Domestically, we have Mortgage Approvals and Consumer Credit figures to be releases shortly, do feel free to get in touch if you wish to discuss an upcoming currency transfer with me.