GBP/AUD Exchange Rate Edges Lower despite Mounting No-Deal Opposition
The Pound Australian Dollar (GBP/AUD) exchange rate eased this morning, with the pairing trading around AU$1.787 as increasing opposition to a no-deal Brexit mounts.
This follows Labour leader Jeremy Corbyn’s rallying for a general election, which he said was the ‘change of direction that the country’ needs after leaked Government documents revealed possible food and medicine shortages in a no-deal exit.
Mr Corbyn is planning to win a voice of no-confidence in the Conservative Government, which would force a general election after a 14-day period.
He is expected to say in his speech later on today:
‘A general election triggered by the Tory Brexit crisis will be a crossroads for our country. It will be a once-in-a-generation chance for a real change of direction, potentially on the scale of 1945 or 1979. Labour believes the decision on how to resolve the Brexit crisis must go back to the people.’
However, Sterling traders are remaining downbeat as a voice of no-confidence in Prime Minister Boris Johnson seems unlikely to gain traction, thus ruling out a general election before October 31.
Today saw the publication of the year-on-year UK Rightmove House Price Index for August, which rose from -0.2% to 1.2%.
Miles Shipside, a Director at Rightmove, commented:
‘We often see an autumn activity bounce, but perhaps this year’s political activities have brought that forward into a summer surge as buyers have gone bolder and earlier than usual.’
AUD/GBP Exchange Rate Improves as ‘Aussie’ Traders Remain Poised for RBA Minutes
The Australian Dollar (AUD) rose against the Pound (GBP) today as ‘Aussie’ traders remain poised the Reserve Bank of Australia’s (RBA) minutes due out tomorrow.
As these are expected to take a wait-and-see approach with regards monetary policy, ‘Aussie’ investors are remaining generally cautious.
However, the US-China trade war still remains in focus, with China being Australia’s largest trading partner.
Tensions between the two superpowers are showing no signs of improving this week.
US President Donald Trump said that the US is ‘doing very well with China, and talking!’ but played down the prospect of a trade deal emerging between the two countries.
As a result, the Australian Dollar has remained under pressure on Monday.
GBP/AUD Outlook: RBA Minutes in Focus
Australian Dollar traders are awaiting tomorrow’s RBA minutes.
Any signs of a wait-and-see approach would provide some relief for the ‘Aussie’, therefore we could see the AUD/GBP exchange rate begin to edge higher.
Meanwhile, Sterling investors will be paying close attention to Brexit developments this week.
The GBP/AUD exchange rate is likely to remain subdued as a no-deal Brexit now appears more likely since negotiations between the UK and the EU have appeared to have broken down.