Little chance of recovery for the pound until a government is in place
The UK is currently in political limbo. I think there is little chance of a significant advance for sterling against the Australian dollar until we have a government in place. A coalition between the conservatives and the DUP is yet to be finalised and the Queens speech has now been delayed until 21st June out of respect to those effected by the glenfell tower tragedy. This is when her majesty is expected to formally announce the new government. There is the probability news will filter through in the press before hand, when the UK has a government in place I would expect a spike in Sterling value.
Brexit Negotiations to commence on Monday
Brexit negotiations will be a key factor in sterling value for the foreseeable future. The enormity of the talks should not be underestimated. Key topics will be the status of EU nationals and Britons who are settled elsewhere in the EU, the price the UK will have to pay to leave and most importantly how trade will continue for the UK after exit.
RBA Meeting’s Minutes
The minutes if the Reserve Bank of Australia (RBA)) meetings are published on Tuesday, two weeks after the interest rate decision . The minutes give a full account of the policy discussion, including differing opinions. They also announce how the members of the committee voted in regards to a rate hike. Keep an eye on this event as it can give an indication to monetary policy moving forward, so can cause volatility on GBP/AUD.
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