GBP/AUD: Pound Still Under Pressure on No-Deal Brexit Fears

GBP/AUD is slightly increasing in early trading on Tuesday, but the chances are that the pair will end the session in red. Currently, one British pound buys 1.8687 Australian dollars, up 0.06% as of 6:35 AM UTC. Yesterday, the price declined by 0.76%, updating the December low.

On Christmas Eve, markets in Australia closed earlier. Markets in the UK will close at 12:00 PM local time. There are no suggestive fundamentals at the moment that could drive the quotation in one direction or another, so investors are regurgitating last week events.

Volumes are weakening, and bears need less capacity to put pressure on the pound.

The slight increase seems to be temporary, as the pair is heading towards the lowest level since mid-October. The sterling thrived after the election results showed that UK Prime Minister Boris Johnson’s Conservative Party won a historic victory. However, sentiment made a u-turn after the PM said he would exclude any attempt of extending the Brexit transition period, which is currently set for December 2020.

Last Friday, the UK Parliament passed the second reading of the Withdrawal Agreement Bill (WAB), which was amended to make any extension of the transition illegal. Investors fear that the tight timeline for the transition might lead to a no-deal Brexit, which is expected to have negative effects on the economy.

Since the lawmakers voted 358 to 234 to pass the WAB, the UK is about to exit the bloc by January 31 of next year. Johnson said before the vote:

“This is the time when we move on and discard the old labels of ‘leave’ and ‘remain’ … now is the time to act together as one reinvigorated nation, one United Kingdom. Now is the moment to come together and write a new and exciting chapter in our national story, to forge a new partnership with our European friends, to stand tall in the world, to begin the healing for which the whole people of this country yearn.”

Jeremy Corbyn, leader of the opposition Labour Party, said the deal was “terrible” and his party would not support it.

Elsewhere, the Aussie is supported by increasing optimism over the US-China trade deal. is a news site only and not a currency trading platform. 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.