australian-dollar-coin - AUD

GBP/AUD started Wednesday on a positive note, gaining 0.14% so far, to 1.8794. The price made a u-turn after touching a support level at 1.8755.

The pair has pointed downwards since Monday amid Brexit uncertainty, but now it can rest a bit on increased optimism.

UK Parliament Backs Brexit Bill

The British pound is now dependent on Brexit developments. UK Prime Minister Boris Johnson reached a deal with European leaders last week but failed to secure the parliament’s support on Saturday, with more MPs voting against it amid a meaningful vote.

Now the PM has to go the hard way by passing the so-called Withdrawal Agreement Bill (WAB) through both the House of Commons and the House of Lords, which requires more time.

Yesterday, lawmakers voted in favor of the Brexit bill for the first time since the referendum, but minutes later they rejected the tight timeline. Thus, Johnson is forced to break his promise of taking the UK out of the bloc by October 31, but at least he’s on the right track now. The PM said:

“Just a few weeks ago, hardly anybody believed that we could reopen the Withdrawal Agreement, let alone abolish the backstop, and certainly nobody thought that we could secure the approval of the House for a new deal.”

On the other side, the EU leaders said that they would support a delay.

CBI Industrial Orders to Lowest Levels in a Decade

GBP still remains under pressure as British manufacturers anticipate their orders to decline at the fastest rate in about ten years during the next quarter. The negative trend is driven by the Brexit uncertainty and slowing global economy, according to a survey carried out by the Confederation of British Industry (CBI) on Tuesday.

The CBI announced that its manufacturing orders tumbled to -19 in the three months through October from +10 in the previous three months, which is the lowest reading since April 2009.

In monthly terms, the indicator declined to -37 in October from -28 in September, below analysts’ forecasts and the lowest level since March 2010.

CBI chief economist Rain Newton-Smith commented:

“A combination of Brexit uncertainty and weaker global growth are clearly hitting sentiment and export prospects, with job prospects at their weakest since the global financial crisis.” is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.