Today debating begins in the House of Commons and I expect this will be the key driver for GBPAUD exchange rates for the remainder of the week. Most media outlets are suggesting that Theresa May has failed to gain further concessions from the EU, therefore the next 3 days could be tricky for the Prime Minister and consequently the pound could suffer.
Going into next week, Conservative MPs are going to have to ask themselves whether voting in favor of Theresa May’s ‘good deal’ is better than voting against her and consequently entering a complete unknown. It’s likely if MPs vote against her, the Prime Minister will take the trip back to Brussels to try to renegotiate. However the problem I have with that is she has lost all of her bargaining chips now that MPs are pushing her to confirm that a no deal Brexit is completely off the table. If the UK are not prepared to leave the EU with a no deal Brexit why are the Europeans going to give further concessions?
Other alternatives would be for Labour to file a motion of confidence against the government which could force a general election, Theresa May to resign, a peoples vote or a no deal Brexit. Most of the alternatives I expect will cause more pain for clients that are buying Australian dollars.
Prime Ministers questions start at midday and the debate will follow. To be kept up to to date as developments unfold feel free to outline your requirements.
If you are buying or selling Australian dollars in the future, I would strongly recommend getting in contact to discuss your requirements. The company I work offers a proactive service to offering economic information whilst having the ability to offer award winning exchange rates. Feel free to email me with your requirements along with the timescales you are working to and I will respond with my forecast and the process of using our company email@example.com.