Pound Sterling Australian Dollar (GBP/AUD) Exchange Rate Flat, Former Brexit Chief Warns Against No-Deal Brexit

Pound Australian Dollar (GBP/AUD) Exchange Rate Muted, No-Deal is Taking a Step ‘Into the Unknown’

The Pound Sterling Australian Dollar (GBP/AUD) exchange rate remains muted and the pairing is currently trading at an inter-bank rate of AU$1.7933.

The Pound was left under pressure on Monday as Former UK Brexit Chief Philip Rycroft warned against a no-deal Brexit.

Rycroft, who resigned after 18 months as Brexit Chief, said that everyone should worry about the prospect of a no-deal exit.

Speaking to the BBC, he said leaving the EU was ‘an unprecedented risk’ and ‘the biggest exercise across government over the last few decades.’

The former Brexit Chief also added:

‘It’s not in the UK’s interest to have no deal, it’s not in the EU’s interest to have a no deal.’

‘I think everybody should be worried about what happens in a no-deal situation. We would be taking a step into the unknown.’

Australian Dollar (AUD) Exchange Rates Flat on Aussie Employment Growth Concerns

The Australian Dollar (AUD) failed to push higher against the weakened Pound (GBP) on Monday despite data showing that Australian job advertisements rebounded last month after a sharp drop in May.

ANZ job advertisements rose by 4.6% in June compared to the previous month’s slump of -8.2%.

However, despite the recent data appearing positive, the overall trend in Australian employment growth still appears disappointing..

Commenting on the data, ANZ’s Head of Australian Economics, David Plank noted:

‘The gain was one of the biggest in 18 months. We don’t think it necessarily represents a turn in the overall downward trend.

‘This [partial recovery] points to slowing employment growth and rising unemployment. If confirmed by the actual employment data, then the RBA will likely react by lowering the cash rate yet again.’

Pound Australian Dollar (GBP/AUD) Exchange Rate Outlook: Will Disappointing Consumer Confidence Weigh on AUD?

Looking ahead to Tuesday, the Pound to Australian Dollar (GBP/AUD) exchange rate could rally following the release of UK like-for-like retail sales data.

If the British Retail Consortium (BRC) reveals sales rebounded in June, Sterling could rise.

The GBP/AUD exchange rate could also benefit from the release of Westpac’s consumer confidence gauge for Australia if sentiment slides.

Millie Empson

Contact Millie Empson