The Pound has hit a 2 1/2 year high against the Australian Dollar after the House of Commons voted in favour of saying no to a ‘no deal’ Brexit.
MPs will now be voting later on today to ask the European Union for permission to delay Brexit after the 29th March which is the the current expected date when the UK is due to leave the European Union.
Owing to what happened last night, once or indeed, if an extension is granted this could carry on for a long period of time according to Prime Minister Theresa May.
The Pound has moved in an upwards direction against a number of different currencies including against the Australian Dollar and we could see further gains later today if the vote goes the right way.
Theresa May has also warned that if her deal is not voted through next week then an extension would need to be very long and I think this could provide the Pound with support as it means trade with the UK can breathe a sigh of relief at least for the foreseeable future.
In my opinion the longer the negotiations last means that I think negotiations will continue to be in stalemate and this could inevitably result in a call for a second referendum.
Clearly there is little appetite at the moment for this to take place but if there is no headway made over the next few months with the talks then this could be one of the only options left.
The Australian economy is feeling a lot of pressure at the moment owing to the slowdown in China with Chinese GDP at 6.6% which is the lowest level in 28 years.
Australia is heavily reliant on Chinese demand and with Australia exporting a third of their goods to China then any slowdown will typically have a negative impact on the value of the Australian Dollar and this is what appears to be happening at the moment.
Having worked for one of the UK’s leading currency brokers since 2003 I am confident of being able to save you money on exchange rates compared to using your own bank then contact me directly for a free quote and I look forward to hearing from you.
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