The pound has surged against the Australian dollar after major events in Britain today have helped cause a strengthening in sterling exchange rates across the board.
The news that the British government must consult parliament before invoking Article 50 was the trigger for a sharp spike higher for GBP AUD as a “soft Brexit” seems more likely, for the moment anyway. The news is pretty monumental as it means that UK Prime Minister has today lost a high court case and must now seek approval from parliament before invoking Article 50.
The government have signalled however that they will appeal the case at the Supreme Court. A slot has already been reserved to hear the case in early December. Clients with a currency requirement should expect more fireworks in the run up to this event and should be very clearly marked in the diary.
The Bank of England Governor Mark Carney also announced the latest interest rate decision today where rates were held and no changes to Quantitative Easing were made. He caused a rally in the pound though by acknowledging a higher inflation outlook and hinted that interest rates could equally jump higher rather than down.
UK services Purchasing Managers Index data released this morning reached the highest level since January this year which also provided a boost.
Australian retail sales data are released tomorrow morning but as far as GBP AUD is concerned it is largely a sterling story.
Clients who are holding sterling are seeing a very volatile period at the moment but there may be some light at the end of the tunnel. The Brexit jitters will no doubt keep the pressure on the pound. If you would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on [email protected]