It is currently the best time to buy Australian dollars with pounds since the day before the Brexit Referendum in June 2016. GBP/AUD interbank exchange rates have risen to these fresh highs owing to increased optimism a deal on Brexit might be reached.
The Australian dollar has also been weaker as investors await the latest news on the Trade Wars with China and speculation mounts that the RBA (Reserve Bank of Australia) will look to cut interest rates ahead.
Brexit extension most likely outcome
Pound to Australian dollars have risen on the expectation a deal is looking more likely, although the press reports seem to suggest an extension is probably the most likely outcome. An extension might lead to numerous outcomes including a General Election, for which there has been a high expectation.
GBP/AUD volatility expected as news emerges from EU Summit
Boris Johnson has been hitting the headlines as he scrambles to reach a deal ahead of the October 31st deadline. This week is crucial since it will see the EU Summit for the end of the week where we will learn if Boris Johnson has been successful in securing a deal.
Expectations for sterling have been partly linked to the likelihood of a no-deal which has generally seen the pound weaker when it has looked likely. GBP/AUD rates have been as low as 1.59 on the interbank rate so the 1.90 witnessed this week is a significant improvement. Expectations ahead are still mixed with potential for no-deal remaining if the deal and talks break down.
Pound to Australian dollar levels have been volatile as the news unfolds so ensuring you are up to date with the market may prove a useful way to ensure you don’t miss out if there is a sudden twist of fate.
Thank you for reading, and if you wish to learn more about the currency markets and pound to Australian dollar, or Australian dollar to pounds transfers, please do get in touch with me to discuss further.