GBPAUD rates have retraced the steps higher taken last week when we briefly hit the 1.77 mark. GBPAUD is now back trapped between the 1.73 and 1.74 range we have occupied for much of 2018. Whilst this pairing could break higher on the better news for the Brexit I do feel there is more chance of the levels testing 1.70 and even potentially being driven back into the 1.60’s.
The most important direct news on the Australian dollar is next week’s interest rate decision which could see the RBA (Reserve Bank of Australia) dropping hints as to when they may next raise interest rates. With tremendous uncertainty over the future direction on monetary policy, there is lots of scope for movement.
The overall expectation for the pound remains that sterling is very much susceptible to future weakness as concerns build over the final outcome from the Brexit plans. As an example, we are about half-way through the Article 50 process ending 29th March 2019, and there are still many vital issues to sort out.
The pound has struggled every time there has been fresh concern over Brexit and it is very difficult to see the next stages progressing without concern. Generally speaking, any deadline for Brexit talks has been missed with late night and last minute meetings usually delivering a final ‘fudged’ and in complete agreement.
The outlook for GBPAUD to rise much higher seems limited to me, I would not be banking on big improvements but the next week will be key. If you have a transfer to make buying or selling the pound and Australian dollar in either direction, perhaps we could offer you some useful information to help maximise your transfer?
For more information on our rates and service, all at no cost or obligation, please contact me Jonathan Watson by emailing [email protected].
Thank you for reading and I look forward to hearing from you in the future.