Australian Dollar Hits 5-Month High, Whilst GBP Looks Unstable With Risk of No-Deal Brexit

GBP AUD Hesitates as Traders Weigh Up Virus Path

As the markets return to work after the festive period, the break has been a positive one for the AUD which finds itself at a 5-month high. Meanwhile GBP has taken a tumble to a 4-week low after worries continue about the risk of a no-deal Brexit. The losses over Brexit concerns have reversed the previous gains experienced from the improved UK consumer confidence index.

Optimism Surrounding the Australian Economy

The Australian economy has been on the rise of late, the strong showing came off the back of stronger than expected job figures and lesser odds of the Reserve Bank of Australia cutting interest rates in February, which are now down to around 34% according to market pricing.

GBP Still Surrounded in No-Deal Brexit Uncertainty

Investors in the GBP are still concerned over the hard deadline that was placed on Brexit by UK PM Boris Johnson and his Conservative government. The deadline means that the likelihood of a no-deal Brexit is increased as negotiation times have been limited to the next 12 months only. The concerns have reversed the modest gains that were experienced with the improved UK Consumer Confidence Index which was released towards the start of last week. The uncertainty looks likely to continue unless developments are made in determining a deal between the UK and the EU in 2020.

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