The pound to Australian dollar has hit the interbank rate of 1.9079, as investors take comfort from recent developments in the polls. The latest poll results state that the Conservatives are leading on 41%, versus Labour on 29%, this is according to the Financial Times poll of polls conducted.
Sterling Buoyed by Likelihood of Conservative Majority Government
Looking ahead, the outlook for the pound looks likely to remain linked to the outcomes on Brexit, as investors monitor the election for signs of how it will influence Brexit. So far, the market is expecting a Conservative majority, that would see the Withdrawal Agreement passed by parliament.
This has been regarded as sterling positive, in that it helps to avoid a no-deal Brexit, which we know from the performance of the pound previously, has seen sterling lower.
US China Trade War Dispute Affecting Australian Dollar Rates
The Australian dollar has been losing and gaining ground on the back of the Trade War developments, as investors seek out what lies ahead for the US – China trade disputes. Looking ahead, the outcome from this situation looks set to play a role in determining how the currency will perform.
Currently, the expectation of a deal to limit the negative fallout from the trade dispute has been reduced, but an underlying belief of no further imminent escalation in tariffs, has held the Aussie down to a degree.
Nevertheless, it is very close to the best time to buy Australian dollars with pounds since the Referendum vote, presenting some much needed good news for any clients buying Australian dollars with pounds.
Tonight, the TV debate between the Labour leader Corbyn, and the Conservative leader Johnson could prove pivotal, with the Conservatives currently ahead in the polls. GBPAUD interbank rates are currently 1.9033, please contact us to learn more about strategy and timings ahead of the first British winter election since 1923.
If you have an upcoming currency transfer and would like to learn more, feel free to contact myself, Jonathan Watson, using the form below.