GBPAUD looks very likely to come in with some surprises this year as uncertainty prevails on the rate. Longer term we are expecting further interest rate cuts which will cause the pound to spike higher against a weaker AUD. The Aussie economy has improved from the worst case but announcements overnight that the RBA will consider infrastructure investments are the kind of thing that will help the AUD.
For now just beware the rate will likely fall to say 1.85 before rising to 2 later in the year! Don’t believe me? Why not email me your thoughts on [email protected] and we can discuss the market.