Sterling Spikes Upwards as ‘Remain’ Takes the Lead at the Beginning of Referendum Week (Joseph Wright)

Pound Pushes Higher Against the Australian Dollar on Recent Economic Divergence

Last week, fears over the possibility of the UK voting to leave the EU created significant weakness in the value of the Pound, with GBP/AUD trading at a 7 and a half week low on Wednesday.

This was due to the ‘Leave’ campaign picking up stream in the polls, especially after word of plans for a European Army hit the headlines.

Since then, campaigning was put on hold for a few days after the tragic death of MP Jo Cox apparently for political reasons, and since the campaigns have recommenced Sterling is spiking upwards across the board as the ‘Remain’ campaigns have once taken taken the lead, perhaps aided by last weeks events and the distasteful advert recently used by Nigel Farage which hasn’t done down particularly well within even his own camp.

High volatility is expected this week, and the outcome of the Referendum, or expected outcome, is likely to drive the exchange rate between GBP and AUD throughout the week. I’m not expecting the financial news releases this week to affect rates much at all, as the EU Referendum will continue to dominate financial headlines and market sentiment.

If you have an upcoming currency transfer to make involving GBP and AUD, it’s worth your time getting in contact with me (Joseph Wright) on [email protected] in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.