GBP/AUD: Pair Attempts New Rally on Johnson’s Election Manifesto

• One British pound buys 1.8913, up 0.05% as of 5:46 AM UTC.
• Boris Johnson made new promises which increased hopes to get Brexit done
• Labour Party pledged to raise taxes on the wealthy and corporations to support the state
• US bank Goldman Sachs anticipates a GBP rally next year

GBP/AUD is slightly up in early trading on Monday. Though, the faint bullish attempt comes after a 0.65% decline on Friday driven by disappointing UK PMI data. Currently, one British pound buys 1.8913, up 0.05% as of 5:46 AM UTC.

Yesterday, UK Prime Minister Boris Johnson made new promises. This increased hopes that his Conservative Party will get Brexit done and will end the uncertainty. He vowed to bring his Brexit deal back to the Parliament before Christmas.

The Conservatives presented their election manifesto, a 59-page document that promises to handle Brexit by the current deadline, no new taxes, and more public sector spending. On the other side, the opposition Labour Party pledged to raise taxes on the wealthy and corporations to support the state.

The opinion polls show that Johnson has the best chances to win the election. Johnson has sought an early election for months, as he hoped to consolidate the position of his party and break the Brexit deadlock. Some suggested that the move might turn out a disaster for the Tories, but the current opinion polls show otherwise.

Speaking to the public in Telford, Johnson said:

“Get Brexit done and we shall see a pent up tidal wave of investment into this country. Get Brexit done and we can focus our hearts and our minds on the priorities of the British people.”

The Prime Minister pledged no further delay to Brexit, saying that he wouldn’t extend the implementation period beyond December 2020.

Goldman Sachs Bullish on GBP

US bank Goldman Sachs anticipates a GBP rally next year. The bank analysts are confident that the next month’s election will open the door to resolving Brexit. In fact, Goldman voiced similar predictions that had been presented earlier by Morgan Stanley and Bank of America Merrill Lynch. In a note to investors titled ‘Best Trade Ideas Across Assets,’ Goldman strategists Zach Pandl and George Cole said:

“Our economists think a victory for the Conservative Party in next month’s election would likely result in a fairly swift resolution of the Brexit process, as well as more expansionary fiscal policy.”

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