Pound to Australian dollar levels have been rising following the outcome from the UK’s General Election, which saw the Conservative Party win a resounding majority under Boris Johnson. It is currently the best time to buy Australian dollars with pounds since before the Referendum June 2016.
With the recent advance for sterling, it is currently the best time in 3 ½ years to purchase Australian dollars with pounds. How likely is this to continue? Well, the outcome from the election in the UK is still being digested and the market will now look to the next events with parliament set to vote on the Brexit Withdrawal Bill this week.
It might be that much of the good news will have been priced into current levels for the pound, which could limit the upside for the passage of the Withdrawal Bill. Whilst the move might end up being largely symbolic, it might ultimately end up being supportive for sterling, in removing the uncertainty regarding the outlook on Brexit.
What Does Brexit Mean for GBP AUD Levels?
Despite Boris Johnson’s claim to be getting Brexit ‘done’, the passing of the Bill will only be one step forward. Clients looking to any GBPAUD transfers may well find increased volatility ahead once again, as tough questions over the UK’s future trading relationship with the EU are posed, and the market is forced to entertain the future possibility of ‘no-deal’ once again.
GBP AUD levels have traded as high as 1.9510 on the interbank level, this is the 3 ½ year high mentioned above. For many clients a target of 1 GBP for 2 AUD may now become a possibility and whilst it is by no means guaranteed, is now closer than it has been since it was last reached in May 2016.
For the Australian dollar, there are also concerns surrounding the outlook on the Trade Wars, with Donald Trump appearing to be on course to agree a trade deal with China, that might help the Australian dollar to rise in value.
If you would like to learn more about factors influencing GBP/AUD exchange rates for an upcoming currency transfer, feel free to contact myself, Jonathan Watson, using the form below.