The Pound has continued to benefit from both the clearer Brexit plans and Trumps inauguration, with the currency gaining by almost 1% against the Aussie Dollar during today’s trading session.
The reasoning behind the Pound’s gains can be put down to uncertainty. Sterling had been struggling since the turn of the year as foreign exchange markets were unaware of the UK governments Brexit plans, additionally many feared that the government would opt for a ‘Hard Brexit’ whereby the government would look to focus more on controlling immigration and not retaining access to the EU’s single market.
These fears were put to rest last Tuesday as the UK Prime Minister, Theresa May gave a Brexit focused speech. During this speech it was announced the any final Brexit deals will be passed through parliament, and straight away the Pound rocketed upward and actually gained against the US Dollar by it’s biggest margin since 2008.
Another reason behind the Pounds turn in fortunes can be put down to events outside of both the UK and Australia. Donald Trump has now been sworn in as the US President, and despite a US focus he has had kind words to say about the UK and the special relationship between the Countries.
Furthermore, his policies have put the foreign exchange markets on edge as many have opted to hold funds in safe haven currencies as opposed to riskier currencies, such as AUD.
Moving forward I expect to see Sterling continue to recover against AUD, although early tomorrow morning could create a major stumbling block.
At 9.30 am the Supreme Court’s ruling on whether or not the UK government require parliamentary approval before formally beginning the Brexit will be announced. This could create major volatility between GBP exchange rates so feel free to get in touch if you wish to be kept up to date with this announcement, as well as other similar developments.
If you are planning to make a currency exchange involving the Pound and AUD, it’s well be worth your time getting in contact with me 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.