GBP/AUD Brexit update (Daniel Charles Johnson)

Risk Appetite Returns, Leading to AUD Strength

With little data releases of consequence being released both sides of the pond the EU referendum polls will be the key factor on any GBP/AUD trade. The most recent polls have the Leave camp in front which is the main reason for Sterling’s weakness against the Aussie. This has also been coupled with very positive data from Australia in the form of record figures in both GDP and unemployment. If you are looking to move pre-referendum buying AUD I would set 1.99 – 2.00 as a realistic target rate to move. I believe current trading levels for AUD sellers are attractive and would be tempted to move sooner rather than later.

If I had to put my neck on the line, I believe the UK will remain in the EU. I feel the leave supporters are far more vocal about their stance and as such are receiving more of the press. I personally am firmly in favor of remaining in the EU, I think the UK economy will be shot to pieces for several years if a Brexit were to occur and as such standard of living. My reasoning behind the economic problems is the difficulty leaving the EU will have on trade negotiations. When the economic uncertainties are brought further in to light closer to 23rd June I think there will be a swing in the remain camp’s favour. It is worth considering the bookies still have the remain camp as favorites, Betfair at 72% for remaining in the EU. They have called the Scottish Referendum and the General Election correctly in recent memory.

Having said that, would I bet all my money one way or the other? With the polls so close any wise person with a currency requirement would hedge their bets thus limiting potential losses. If you have a currency requirement I would be happy to assist. I will not only guarantee to beat any competitors rate of exchange but also provide an individual trading strategy to try an give you the highest possible return on your trade. Do not hesitate to get in touch by e-mailing me at [email protected].