The Pound Australian Dollar exchange rate rose from 1.61 on Monday to close at 1.63 before the weekend – could the pairing climb further in the coming week on Article 50 news?
Last week saw House of Lords debates on the Article 50 bill begin, which is required before the Brexit process and negotiations start in earnest.
While no real progress was made outside of speeches for and against the bill, hopes were nonetheless formed about one particular amendment being approved in the coming weeks.
This involves the security of EU citizens’ rights after Brexit, something currently in a state of limbo-like uncertainty.
Both Liberal Democrat and Labour leaders in the House of Lords have spoken in support of the amendment. In the former case, Lord Newby has stated;
‘There is a big difference between getting an amendment and blocking it. The track record of the House of Lords getting amendments passed is pretty good. There is a very high likelihood that an amendment that will guarantee [EU national] rights will pass in the House of Lords. That’s the good news, then it goes to the House of Commons, I suspect on 13 May’.
Backing Newby up has been Labour’s Angela Smith;
‘My sense is there’s real momentum behind this one and my sense talking to peers across the house and listening to the debate is this is something that the House of Lords would support, cross-party’.
If this amendment does get approved, then the Pound could well rally due to the implications of such an action. With EU citizens secure in their place in the UK after Brexit, there could be less of an onus among EU leaders to send UK expats in their countries back to the UK.
It is also worth noting that the US energy sector may have an impact on the Australian Dollar given that concerns have recently been voiced about US oil policies damaging the Australian economy.
As the world’s third largest liquefied natural gas (LNG) exporter, Australia is forecast to suffer in this area if the US becomes a much more appealing prospect for investors, as has already been evidenced by Australian energy executive Malcolm Roberts;
‘If Australia ceases to be a competitive location they have plenty of competition elsewhere to invest. We have seen some US-based companies not proceed with companies here in Australia and invest instead in the United States’.
Recent Interbank GBP AUD Exchange Rates
At the time of writing, the Pound Australian Dollar (GBP AUD) exchange rate was trending in the region of 1.63 and the Australian Dollar Pound (AUD GBP) exchange rate was trending in the region of 0.61.
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