GBP/AUD exchange rate as no-deal Brexit probability increases
Amongst the leading economists and financial institutions, the chances of a no-deal Brexit appear to be increasing, with many suggesting the chances of a no-deal sit between 40% to 50%. One of the more pessimistic banks out there is Japan based MUFG which signals a 60% chance of a no-deal Brexit along with further falls for sterling exchange rates owing to the uncertainty and negative impact this could have on the UK economy.The pound to Australian dollar exchange rate is 1.7867 on the interbank exchange at the time of writing this article.
Australian Dollar under pressure from slowing economy and US China trade war
Despite falling by over 4% over the past 3-months against the Australian dollar, so far this year the pound is only down by around 1% against the currency which isn’t as greater a fall as the pound has experienced against other major currency pairs such as the US dollar where the drop has been in excess of 4%. This is most likely due to Australian dollar weakness as the currency has been under pressure due to the slowing economy and also the trade war talks between the US and China having a negative impact on the Australian economy.
Brexit continues to drive GBP/AUD exchange rates
The UK is expected to depart the European Union on the 31st of October. With the current trend of sterling weakness increasing as we get closer to this date continues, we could see the pound come under pressure. Since GBP/AUD rates dropped below 1.80 we have seen the pound struggle to recover a break above this benchmark so it will be interesting to see how things play out for the pound moving forward.
Tomorrow morning there is raft of data set for release out of Australia such as Inflation data along with Jobs market figures. Retail Sales figures will then be released out of the UK at 9.30am with a drop expected so there could be further movement for pound to Australian dollar exchange rates if another contraction is announced. The pound fell last Friday when we found out that the UK economy contracted during the 2nd quarter of this year, so tomorrow’s release is worth watching. If you would like to be kept updated on the latest GBP/AUD currency news or have an upcoming currency transfer and would like to save money when compared to using you high street bank, feel free to contact the team directly using the form below.