The GBP AUD exchange rate was 1.0% higher on Monday as the pound sterling and Aussie dollar wait for retail sales updates from both economies.
The GBP to AUD trades at 1.7626 with the pound sterling looking for support at the April lows near the 1.7700 level.
Brexit Could see the UK become a “clear European leader”
Brexit could boost the UK economy now that it has left the EU, with one forecast touting Britain as a “clear European leader”.
Eurozone growth slowed in the first quarter of 2022, according to new data from the EU’s statistics agency showed with GDP slowing to 0.2 percent in the euro area in the first quarter.
The data, published by Eurostat, came after the bloc had appeared to bounce back from the pandemic last year. Despite the EU’s economic gloom, the UK could experience a boom in some areas. A forecast by the London-based Centre for Economics and Business Research (CEBR) offered a promising take on the post-Brexit economic future.
Its ‘World Economic League Table 2022’, published in December, touted the UK as a “leader” in digital, creative and tech businesses.
“This is especially important for the UK’s ‘flat white economy’, the merger of digital and tech where the UK is the clear European leader.
The group said that the UK must retain a skilled and creative labour force to maintain its lead in this sector.
Another report by CEBR in March last year found that the UK’s so-called ‘flat white economy’ is now 28 percent larger than the country’s manufacturing sector.
The UK and Australia both await retail updates with Australia looking for a 1.6% growth figure after last month’s 1.8%. For the UK, the BRC retail sales monitor will offer some additional insight ahead of the official retail figures.
BP seeks a $10bn stake in Australia’s Asian renewables hub
BP has revealed plans to take a major stake in the Asian Renewable Energy Hub (AREH) in East Pilbara, one of the world’s largest projects to produce green hydrogen from wind and solar.
The UK energy giant is expected to take a 30% stake in the US$36bn AREH, which plans to harness 16GW of onshore wind and 10GW of solar to produce renewable H2 and ammonia, while the company will also become its lead developer.
Among its ambitious green targets, BP plans to develop 50GW of renewables by 2030 and to take major positions both in green hydrogen as well as blue hydrogen.
AREH is currently led by developers InterContinental Energy and CWP Global, while wind OEM Vestas and Macquarie also have stakes in the Western Australian project, which aims to begin generating power by 2027.
Global megaprojects such as the AREH are aiming to reduce the cost of H2 fuel by achieving oil & gas industry scale. A headwind for such projects has been the size and capital outlay, but the backing of an oil supermajor will add to the viability of AREH.