Pound to Australian Dollar forecast: Yellowhammer Brexit document and ‘illegal’ parliament suspension to influence GBP/AUD rates

Pound to to Australian Dollar Rallies over 1.89

Pound to Australian Dollar rate: Has Boris broken the law?

Yesterday the highest civil court north of the border ruled that Boris Johnson’s decision to suspend parliament was illegal. Although the result came out this has done little to impact the pound to Australian dollar exchange rate. The next step in the ongoing saga will be next week when the Supreme Court meets to make it own decision. The hearing will take place on 17th September so pay close attention to this decision and its impact on the value of the pound vs the Australian dollar.

Last night the Yellowhammer document was released which looks at a ‘reasonable worst case scenario.’ However, communication over the proroguing of parliament was denied. Pound to Australian dollar exchange rates have been trading either of 1.80 during the course of this week. There is no clear trend emerging yet between the currency pair. Therefore, it is important to follow the updates on Brexit which are likely to be the biggest influence on the GBP/AUD pair.

Will a no deal Brexit result in a UK recession?

KPMG has suggested that the UK could lose 1.5% growth and fall into its first recession in ten years if there is a no deal Brexit. We are less than two months to go and with parliament suspended we are running short of time. Boris Johnson is due to meet with European leaders on 17th October. This could mean that the Prime Minister will be forced into asking for an extension. Mr Johnson has been adamant that he wants things sorted by the end of October. However, he is facing a lot of obstacles.

Over the last few months every time when a delay to Brexit has happened this has tended to improve the value of sterling. Therefore, if we see another delay announced next month could this help the pound to improve against the Australian dollar?

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