GBPAUD spiked above 1.62 yesterday as the worries over the severity of the UK’s Brexit were slightly tapered. This doesn’t really change the vote but it does mean that by having to go through parliamentary approval the UK Government could find their hands are tied and will not be able to force their tough view of Brexit on the UK economy. The essential principle of law is that parliament is sovereign and therefore Theresa May to challenge it was outside of her remit. Essentially she did not have authority to trigger Article 50 without seeking consent of parliament. Parliament is an essential check on Government which seeks to prevent a Prime Minister or Government rushing through ‘bad’ legislation. By putting this check in place the government cannot perform certain tasks and it has been confirmed they cannot invoke Article 50 without parliamentary approval.
The situation is not over, far from it and sterling will continue to struggle. Looking at GBPAUD rates I would be viewing this latest improvement as something to take advantage of for AUD buyers with pounds since we could easily see the Aussie rise down the line. The Aussie has benefited from the new Governor Lowe who this week confirmed there are no immediate cuts planned which helped the Aussie to strengthen. With the US Election next week there is a huge amount happening which might move the GBPAUD rate next week, personally I feel if buying Aussies this latest improvement is probably well worth taking advantage of.
GBPAUD rates have risen to fresh highs which given the backdrop of the UK’s political situation and fears over just how the US election will pan out could be something to not miss out on. Exchange rates are by nature unpredictable and it is usually a good idea to be making plans for all eventualities. In my work as Chief Analyst for the one of the UK’s largest independent currency brokerages I am well placed to offer insight and information to help you make a transfer at the very best exchange rates.
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