The Pound has spiked in the early hours of this morning, hitting a new 1-year high against the Aussie Dollar as the Pound gains across the board of major currency pairs.
The reason for the spike is due to the much speculated Brexit Bill figure apparently being agreed between UK and European counterparts, with the figure reportedly being around £50bn. The cost is to cover accrued European debts and liabilities over the past 44 years of EU membership, and despite being such a high figure the market reaction has been a boost to Sterling’s value.
The market belief is that this Brexit Bill agreement is now likely to pave the way for trade negotiations to begin between the UK and the EU, therefore reducing the likelihood of a disorderly Brexit or Hard Brexit as many have labelled it.
With regards to the GBP to AUD rate, I would now expect to see the rate hit 1.80 as opposed to 1.70 next as should Brexit negotiations progress I expect to see the Pound continue to climb as confidence returns to the markets.
Economic data out of the UK is quiet for the remainder of the week, which means the GBP/AUD pair may continue to be driven by sentiment which favours the Pound after this latest Brexit update.
If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on [email protected] and I will endeavour to get back to you as soon as I can.