Last night UK Prime Minister Theresa May suffered another blow at the EU summit, and I believe this could be the last nail in the coffin which could force her resignation. The EU humiliated the Prime Minister when they were clear that there will be no further concessions. In addition the EU went on to state that there will be no binding agreements or further legal text.
A wounded Theresa May will now make her way back to the UK and MPs from all parties will want to know Theresa May’s plan B or it’s likely further MPs will call for her resignation. Next week I expect will be the most important week for Theresa May in her reign as Prime Minister so far. One bad move could leave her in ‘check mate’ as she has backed herself into a corner.
Is this the end for Theresa May?
Does Theresa May have a plan B or is it all over for the Prime Minister? This is the question clients buying Australian dollars or selling Australian dollars to buy pounds need to ask themselves. Personally I believe her time is limited as she is not prepared to make any changes to her own red lines (free movement of people) and the EU have made it clear the negotiations appear to be over and Theresa May needs to go back to the UK and convince MPs that this is the only deal on the table.
Therefore looking forward, I expect further uncertainty and the pound to decline against the Australian dollar. For clients that are emigrating to Australia, now is the time to get in touch to discuss your options. If Theresa May does decide to resign as she has no other option, its going to be difficult to decide a new leader of the Conservative Party, and this could force a general election.
In other news Australia will release their latest meeting minutes next Tuesday. The likelihood is that the RBA minutes will confirm that the central bank continue to forecast no change in interest rates and the housing market will be the key concern. This event could potentially cause a spike for Australian dollar buyers.
If you have plans for a Australian dollar transfer I would strongly recommend getting in touch to discuss your position. You can send me a message directly using the form below and I will respond to you personally: