GBP AUD exchange rates are on tenterhooks at present as we all eagerly await the Supreme Court ruling on whether or not UK Prime Minister Theresa May must consult Parliament before invoking Article 50, the formal process to withdraw from the European Union. This topic has been discussed at length on this blog but I cannot emphasise how important the decision is and how much of an impact it will have on the price of sterling.
It has been reported this afternoon that Theresa May will be making a speech surrounding Brexit on Tuesday of next week. This is likely to create volatility and will also fall around the time of the Supreme Court ruling. The Supreme Court normally releases its verdicts on a Wednesday although this is by no means a requirement or guaranteed in any way.
However it would be quite fitting that Theresa May makes a speech next Tuesday with the outcome to follow from the Supreme Court the day after. It is my understanding that the government has requested early viewing of the outcome to put preparations in place in light of the seriousness of this case. Next week looks set to be a rollercoaster for any clients buying or selling Australian dollars and there could be some very good opportunities.
Those clients with a requirement to buy Australian dollars would be wise to get in touch as there is a risk that the pound could fall sharply. The flip side is that if Theresa May loses the appeal the sterling is likely to move higher.
Data is light as we end this week so it will be politics largely driving the markets. Australian home loans, vehicle sales and consumer confidence are all released next week which will give clues as the performance of the Australian economy.
If you would like further information on buying or selling Australian dollars and to discuss how we can assist 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]