Will GBPAUD break through 1.70?

Economists are split at present in regards to the future of GBPAUD exchange rates, and after reading the last few articles on this website, it seems that traders on the trading floor are also split and it’s no surprise when the UK’s Brexit negotiations continues to spring surprises.

Head EU negotiator Michel Barnier has announced that Brexit negotiations had hit deadlock however that same day reports were suggesting that EU officials would meet to discuss what a potential trade deal would like if the UK and EU come to an agreement about EU citizens rights and the divorce settlement bill.

With UK inflation breaking through 3%, the market is pricing in an interest rate hike which could push GBPAUD through the 1.70 barrier. However Governor of the Bank of England Mark Carney’s comments yesterday do not fill me with much confidence. He was asked if the Bank of England plan to change monetary policy and would not give a straight answer. Nevertheless in the next 2 weeks I believe the pound will strengthen enough in anticipation providing Australian dollar buyers with a window of opportunity to buy Australian dollars above 1.70.

Longer term its important to understand that predicting the Brexit negotiations outcome is impossible. Positive news will strengthen the pound negative will do the opposite. I am optimistic that deal will be struck eventually however other traders on the floor are not. If you are purchasing pounds with Australian dollars or vice versa I would recommend getting in touch and I will keep you up to date with regular information until you are ready to convert drl@currencies.co.uk.

If you are buying or selling Australian dollars in the upcoming months and want to achieve rates of exchange that are better than your bank, whilst receiving regular economic information feel free to email me with the currency pair (AUDGBP, AUDEUR, AUDUSD) the reason for the transfer (company invoice, property purchase) the timescales you are working to and I will respond with my forecast and the process of converting currency. My direct email address is drl@currencies.co.uk and I look forward to receiving your email.