Pound Australian Dollar (GBP/AUD) Exchange Rate Muted as Bercow Calls for Parliament to Reconvene ‘Without Delay’
UPDATE: The Pound Sterling Australian Dollar (GBP/AUD) exchange rate remained muted and the pairing is currently trading at around AU$1.8348.
The UK Supreme Court ruled on Tuesday that the Prime Minister’s decision to suspend parliament for five weeks was unlawful.
When giving the ruling, court president Lady Hale stated ‘the effect on the fundamentals of democracy was extreme’.
She noted that it was now up to the Speaker to decide what would happen next.
Following the ruling, Commons Speaker John Bercow said that parliament ‘must convene without delay’.
He also added that he would consult party leaders ‘as a matter of urgency’.
However, the ruling did little to buoy the Pound against the ‘Aussie’ as the decision left room for further Brexit uncertainty.
Pound Australian Dollar (GBP/AUD) Exchange Rate Muted Ahead of Prorogation Ruling
The Pound Sterling Australian Dollar (GBP/AUD) exchange rate remained muted and the pairing is currently trading at around AU$1.8344.
Sterling was left muted against the ‘Aussie’ on Tuesday morning as investors waited the highly anticipated decision from the UK Supreme Court.
The Court is due to rule on whether or not the Prime Minister misled the Queen when he asked her to prorogue parliament for five weeks.
While Boris Johnson’s government have argued the suspension of parliament is not a court matter, it has been noted the government will ‘abide by the ruling’ when it is announced later this morning.
However, it is likely the Pound has been left under pressure as if the court rules against Johnson it could create further uncertainty.
Added to this, the Prime Minister has not ruled out the possibility of seeking a further suspension of parliament if the court rules the move unlawful.
Australian Dollar (AUD) Left Muted as Beijing Grants New Tariff Waivers
On Monday, US Treasury Secretary Steven Mnuchin stated in-person US-China trade talks will happen in two weeks.
This came after a fresh wave of uncertainty after the Chinese delegation’s farm visits to the United States were cancelled.
However, this could do little to buoy the ‘Aussie’ at the start of the week.
In an interview with Fox Business Network, Mnuchin stated:
‘I think it’s not next week but the following week we’ll be having those talks.
‘The president’s been very clear: if we can get the right deal, he wants the deal. If we can’t get the right deal, he’s happy with the tariffs.’
Meanwhile, a report from Bloomberg revealed Beijing granted the US new tariff waivers for soybean imports.
This exempts some domestic state and private firms from retaliatory tariffs on soybeans imported from the United States.
Pound Australian Dollar Outlook: Will RBA Lowe Signal a Further Rate Cut?
Mnuchin’s comments reinforcing face-to-face talks were set to continue did little to buoy the Australian Dollar (AUD).
The ‘Aussie’ remained under pressure ahead of today’s speech from the Governor of the Reserve Bank of Australia (RBA).
Looking ahead, the Australian Dollar could slump against the Pound (GBP) following a speech from the RBA Governor.
If RBA Governor Philip Lowe uses the speech as a way to signal the bank is going to slash rates once again, the Pound Australian Dollar (GBP/AUD) exchange rate is likely to rise.