The Pound plummeted against the Australian Dollar on Thursday night when the initial exit polls were released. During the last 12 months polls have been inaccurate firstly being completely wrong with the Brexit vote and secondly with the Trump victory.
However, the exit polls this time round were spot on and this saw the Pound fall by 3 cents against the Australian Dollar. The market continued to see the Pound fall against the AUD during early Friday morning before stabilising by midday.
At the time of writing the Tories are looking to sort out an agreement with the DUP in order form a majority as they are still a few seats short of being able to form a majority government.
Following the previous election when we saw a hung parliament this weighed heavily on the Pound against all major currencies as the negotiations were rather protracted. This time round I think the Tories are a little more prepared so I think a deal could be reached very quickly as the DUP even on the election night suggested that they would be open to the idea.
However, although I expect the talks to go through quickly on this occasion the next problem will be just over a week away when the Brexit negotiations begin.
The suggested date is for June 19th and as we have already seen the European leaders are opposed to the Brexit and so I think they will make the negotiations as difficult as possible in order to discourage any other countries to think about leaving the European Union.
Therefore, I think we’ll see further problems coming during this month for the Pound vs the Australian Dollar.
If you would like further information about buying or selling Australian Dollars or for a free quote then contact me directly and I look forward to hearing from you.
Tom Holian email@example.com