Pound fails to move against the Australian Dollar
The pound has strengthened quite considerably against a number of major currencies this week, although the currency’s gains against the Australian dollar have been subdued as the Australian dollar has seen a spell of strength cancelling out any boosts for GBP regarding GBP/AUD.
Brexit dictating Sterling movement
Sterling has been rising and rose by the highest amount over 2-days in 10-months against the euro this week. The GBP/USD rate has also climbed by around 1% and this has been due to the chances of the no-deal Brexit taking place next month when the UK is supposed to be leaving the EU on the 31st of October.
Generally speaking the pound rises when talk of Brexit extension’s are touched on, and with the Bill to extend the current deadline being voted on in the House of Lords today, and a no-deal being ruled out by Westminster much to PM Boris Johnson’s dismay, we have seen the pound climb.
AUD strength due to hopeful progress in US China trade talks
The Australian dollar on the other hand has also seen gains this week and at the time of writing GBP/AUD has dropped below the 1.80 handle, after trading north of 1.81 earlier this morning. Global equity markets have risen sharply as hopes for progress on the US-China trade talks increase. This would benefit the Aussie economy due to the countries reliance on Chinese trade and we’ve seen the AUD become more and more influenced by Chinese updates in recent years. Those of our clients and readers following the Australian dollars value should monitor this topic for clues regarding the next market movements for the Aussie Dollar value. If you wish to be updated regarding any market movements for the Aussie Dollar do feel free to register your interest with me.