GBP/AUD Exchange Rate Rises Sharply as EU Chief Negotiator Backs Backstop Plans
UPDATE: The Pound Sterling Australian Dollar (GBP/AUD) exchange rate has shown a surprising jump of 1.1% on Friday afternoon, hitting an interbank exchange rate of AU$1.81.
This notable rise has been caused by fresh hopes for a positive Brexit agreement, as GBP traders pounce on remarks made by EU Chief Negotiator Michel Barnier.
Mr Barnier has stated that the EU is ‘open to discussing other backstops,’ in reference to the Irish border.
While Mr Barnier has stressed that a finalised Brexit deal is still a long way off, the Pound has still rallied on hopes for imminent progress in Brexit talks.
GBP/AUD Exchange Rate Continues to Rise on Brexit Optimism
UPDATE: The Pound Sterling Australian Dollar (GBP/AUD) exchange rate has firmed today, as GBP traders continue to speculate about a Brexit breakthrough.
This sentiment has been strong enough to prevent a GBP/AUD decline in the face of some supportive Australian growth figures.
Wednesday brought the news that Australian yearly GDP grew by 3.4% in Q2 2018, however the Australian Dollar has remained in low demand due to global trade concerns and the stronger Pound.
Rumours of Progress in Brexit Talks Push GBP/AUD Exchange Rate Up
Pound Sterling (GBP) has ticked higher against the Australian Dollar (AUD) today, hitting an interbank exchange rate of AU$1.79.
This appreciation has been caused by the news that there could be an acceleration in Brexit talks, potentially leading to the October deadline being met.
Bloomberg reported on Thursday that the German and UK governments had agreed to accept a less detailed Brexit agreement – while both sides have denied the claim, the Pound is still trading higher.
Australian Dollar to Pound Sterling (AUD/GBP) Losses Caused by Mortgage Rate Rise
The Australian Dollar (AUD) has fallen against the Pound (GBP) today, following the news that two Australian banks have raised their mortgage rates.
CBA and ANZ’s decision to bump up the repayment rate has concerned Australian Dollar investors, mainly because this could squeeze high-debt households and lead to reduced spending in the future.
Weekly Pound Sterling Australian Dollar Exchange Rate Forecast: Is GBP/AUD Volatility ahead on BoE Meeting?
Pound Sterling (GBP) traders are already looking to next week’s data to predict movement against the Australian Dollar (AUD).
The main UK announcements will be Tuesday’s jobs market data, along with Thursday’s Bank of England (BoE) interest rate decision.
In the former case, the UK unemployment rate is predicted to rise from 4% to 4.2% in July; the pace of wage growth with bonuses is also expected to increase from 2.4% to 2.5%.
These results could cause some GBP/AUD exchange rate turbulence, as the negative of higher unemployment could be countered by the positive of faster wage growth.
The main event is Thursday’s BoE interest rate decision. No change from 0.75% is expected, but the GBP/AUD exchange rate could still rise if BoE policymakers predict that the UK could weather a bad Brexit deal.
Australian Dollar to Pound (AUD/GBP) Exchange Rate Turbulence Possible on Business Confidence Scores
Next week’s main Australian news will be Tuesday’s business confidence reading and Thursday’s jobs market data for August.
In the latter case, the AUD/GBP exchange rate could decline if a higher unemployment rate is confirmed during the month.
Similar to the UK, Australian Dollar traders are looking for lower unemployment rates that could cause real wage growth and an eventual interest rate hike from the Reserve Bank of Australia (RBA).