Brexit talks intensify before key EU summit
The pound to Australian dollar exchange rate has rallied further as hopes are lifted that a deal on Brexit can be reached with just 15 days to go until the 31st October deadline. After 3 and a half years since the 2016 Brexit referendum intensive tunnel negotiations are taking place between the UK and EU to try and hammer out a deal and one that resolves the contentious Irish backstop issue. Should a deal be reached which could come as soon as today then it will be put forward to EU leaders for approval before then coming back to the British parliament for a meaningful vote expected to take place on Saturday. If all goes to plan then this will be the 4th time parliament has ever sat on a Saturday, it has normally been reserved for wartime.
Rates for GBP vs AUD have surged to 1.89 for the pair this morning creating an excellent opportunity for those looking to buy Australian dollars. Those looking to sell Australian dollars would be wise to consider planning around the events in these coming days as there could be a huge shift in exchange rates. Some of the forecasts coming from economic commentators have predicted huge movements in either direction depending on whether the outcome is deal or no deal. To put things into perspective the Governor of the Bank of England has warned the country to expect serious volatility in the currency and financial markets over these coming days depending on Brexit talks.
UK Consumer Price Index inflation data released this morning
There are a number of UK economic data releases this morning including Consumer Price Index inflation data alongside retails sales numbers tomorrow. However all eyes will be on any UK EU deal which may materialise as soon as this morning. Employment data from Australia is released this evening as is National Australia Bank’s business confidence data. Considering the Reserve Bank of Australia has cut interest rates to just 0.75% this year the central bank are likely to be paying close attention to these numbers.
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