GBP/AUD Advances on Brexit Optimism

GBP/AUD is edging up in early trading on Monday, driven by Brexit optimism. Currently, the pair is trading at 1.8982, up 0.36% as of 5:27 AM UTC.

The price has managed to recover losses from Thursday and Friday sessions, maintaining a steep uptrend that took off on November 7 at 1.8550.

The sterling is driven by increased Brexit optimism after a UK poll showed that Prime Minister Boris Johnson’s Conservative Party would have a 14 point lead against the Labour Party during the national election scheduled for December 12. The poll, conducted by Survation, was presented by Good Morning Britain a few hours ago.

According to the survey, Johnson’s party would get 42%, while the opposition Labour Party would manage to secure 28%. Elsewhere, pro-EU Liberal Democrats got 13% and the Brexit Party was on 5%, the poll shows.

The UK will have an election in December for the first time in about a century, after PM insisted on organizing the early poll in the hope that his party would consolidate its position, allowing him to break the Brexit deadlock. Previously, Johnson called for an early election on several occasions, but the UK Parliament opposed.

Johnson will hold a speech at the CBI’s annual conference later today. He will say that, if elected, his party would handle Brexit and end the current uncertainty and chaos that has paralysed the economy, according to advance extracts seen by media.

“Britain stuck in gridlock and our economy stuck in first gear. Extension to extension. Marching business up to the top of the hill, only to march them down again,” the PM is expected to say.

According to Johnson, while big companies didn’t favor Brexit in 2016, they will do now because they are tired of the ongoing uncertainty.

The PM hopes that his party will win a majority so that the parliament could pass his deal with the European leaders. Elsewhere, Labour Party leader Jeremy Corbyn pledged to renegotiate the Brexit agreement and hold another referendum.

“With a Conservative majority government you can be sure we will Get Brexit Done and leave with the new deal that is already agreed — ending the uncertainty and confusion that has paralysed our economy,” Johnson will say.

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