GBP/AUD rates rise after positive Brexit talks
The Pound to Australian dollar exchange rate has been rising in the last 24 hours, following news that Boris Johnson might be able to reach an agreement on the Irish border issues. Boris met with Leo Varadkar today where reports suggest a ‘pathway’ to a deal has opened up.
Sterling to Australian dollar exchange rates proved their sensitivity once again to Brexit developments, following a volatile week in which Boris’ deal was initially labelled as ‘dead’. GBP/AUD interbank rates have risen to 1.8431 at their highest today. Sterling appears to be in the firing line over Brexit and with some days left ahead to finalise the arrangements, ahead of the EU Summit next Thursday and Friday, there may be more volatility ahead.
US China Trade War talks ongoing
Sterling to Aussie dollar rates are also encountering the unfolding of news on the Trade Wars, as China and the US meet to thrash out the latest meetings. Uncertainty over the relations between the two superpowers has an influence on global economic sentiment, which the Australian dollar has a strong correlation to.
In the future, the currency market will need to find out what the outlook is for Brexit and also the Trade Wars, to provide the GBP/AUD exchange rate with the information it desires to find its way. The developments of both issues appear to be central to both currencies individual behaviours.
How will next weeks EU Summit effect GBP/AUD exchange?
Next week’s EU Summit is an event to monitor unless we have had any news previously from the UK and EU regarding the Brexit outlook. If Leo and Boris can strike a deal, this might see movement on the GBP/AUD level ahead of the summit.
Sterling could now find itself in the spotlight as investors await the final pieces of news which may determine what kind of Brexit lies ahead. If you have a currency transfer to consider on GBP to AUD or AUD to GBP, such news could prove important.
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