Brexit talks dominate Sterling vs Australian Dollar exchange rates (Tom Holian)

The Pound vs the Australian Dollar has had a very volatile week so far with GBPAUD rates moving by as much as 3 cents from the high to low.

The movements have been caused by the uncertainty surrounding the Brexit discussions but have overnight moved in a positive direction briefly touching 1.70 before falling again.

The European Union has started to prepare a plan for its post-Brexit negotiations with the UK but at the same time refusing to discuss any details with the UK.

Nothing has been agreed but rumours are that the EU will be open to the UK in order to encourage a deal which is a positive sign for the UK and this is why we saw the Pound make gains vs the Australian Dollar yesterday evening providing some better opportunities to buy Australian Dollars with Pounds.

So far there has been insufficient progress with the talks but in the draft paper EU Chief Negotiator Michel Barnier wants to cover the key topics of EU citizens in the UK, peace in Northern Ireland and the so called ‘divorce bill.’

Later on this afternoon there is a huge amount of data coming from the US with the release of both Retail Sales as well as Inflation figures and this could cause further volatility on GBPAUD exchange rates to end the week.



