Could Boris Johnson’s meeting with EU President Juncker provide the Pound with a boost?

PM to meet outgoing EU President Jean-Claude Juncker today

PM to meet outgoing EU President Jean-Claude Juncker

The Pound to Australian Dollar rate appears to have consolidated north of the 1.80 benchmark over the past week with GBP/AUD hitting 1.82 at its highest stage earlier today.

Since then the Pound has come under pressure, but it remains north of 1.80 which tends to be a key level for the pairing as those of our readers following the pair for some time will be aware.

Sterling has begun the days trading under some pressure on what could be a busy day for the currency as UK prime minister Boris Johnson is travelling to Luxembourg today to meet with the outgoing EU President Jean-Claude Juncker. The Pound has been supported in recent weeks owing to market expectations of fading chances of a no-deal Brexit although Johnson has confirmed that he expects the UK to leave the EU at the end of next month when the current Brexit intention is due to expire.

There has been media headlines recently suggesting that UK negotiators are now discussing plans for Northern Ireland to continue to abide by some EU regulations that the remainder of the UK will not. This is intended to ensure the Northern Irish border remains peaceful and there has also been talk of the DUP being more open minded to this kind of arrangement.

US and China trade talks

Those following the Australian Dollars value should pay attention to the outcome of US and China trade talks which have been ongoing for some time now. With talks progressing and the US Central Bank (Fed Reserve) planning on cutting interest rates soon we’ve seen global stockmarkets boosted as hopes for the global economy growing have increased. This could in turn provide the Australian economy with an important boost due to the currencies close knit relationship with China.

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