Latest Brexit preparations: How has this affected the GBP/AUD exchange rate?
The pound to Australian dollar exchange rate has found support with rates sitting above 1.80 for the GBP vs AUD pair. British politics continues to keep the markets guessing though over whether or not a deal will be reached between the UK and EU over Brexit. With the 31st October deadline approaching the pound has found some support as the markets have begun to feel slightly more optimistic that a deal will be reached. As the clock counts down the government is preparing the public to get ready for Brexit 31st October and signs on the roadside are appearing up and down the country letting drivers know to get their papers ready.
The DUP which props up the government has reportedly backed down on some of its red lines in a move to try and broker a deal. There is reportedly a feeling in Westminster that if they can’t get an election then they need a deal. The controversial speaker of the House of Commons John Bercow has signalled that he will use “creative” ways to try and stop UK Prime Minister Boris Johnson from taking the UK out of the EU without a deal. Those with pending requirements either buying or selling Australian dollars would be wise to plan around all these latest developments as the path of Brexit is far from clear. There are a vast number of politicians that would like to see a second referendum or to cancel Brexit altogether. The hearing in the Supreme Court next Tuesday to decide whether it was lawful to prorogue parliament could also create volatility for the pound vs Australian dollar. Any suggestion that parliament would need to be recalled for example could make life difficult for the British government.
US China trade war: Australian dollar sees gains
In Australia the dollar has been able to make some gains as focus moves to US China trade talks once again. US President Donald Trump has delayed a tariff which was scheduled for October by two weeks ahead of planned talks between the leaders. The trade war is still a major driver for the Australian dollar and any developments are likely to see the Australian dollar react.
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