GBP/USD: Pound Steady vs. Dollar Ahead of Super Wednesday

The British pound is lower against the Australian dollar on Wednesday.

  • Pound-Aussie exchange rate nears 1-year low
  • US / China tensions – Houston Texas China consulate to close
  • Pound turns lower with stock markets before Tesla/ Microsoft earnings
  • ‘No deal’ rumours resurface before Boris’ July deadline for EU/UK trade arrangement

GBP/AUD was down by 31 pips (-0.17%) to 1.7828 as of 4pm GMT. This week the exchange rate is lower by -0.76%.

The currency pair gave up yesterday’s close near 0.785 early on and dropped as far as 0.77 before recovering almost all the day’s losses. Yesterday it fell -1.04%.

GBP: Post-Brexit concerns weigh again

Sterling is closing in a one-year low against the Australian currency, in what is now a 4-month old downtrend that started at the peak of fright about the pandemic in financial markets.

The pound seemed to lose ground after an article in the Daily Telegraph, which cited sources saying the British government now has the ‘working assumption’ that a deal cannot be done in time for the  July deadline suggested by PM Boris Johnson. A ‘deadlock’ over fishing rights, governance, the role of the European Court of Justice (ECJ) and so-called level playing field restrictions is making a deal hard to grasp according to the paper.

AUD: Aussie brushes off China consulate closure in Texas

There is a big test coming up for all ‘risk on’ trades, including the British pound after the close on Wall Street when Tesla and Microsoft report quarterly earnings. Both companies have seen share prices rise significantly, despite all the risks associated with the coronavirus pandemic. Microsoft is up 32% year to date and 50% over 12-months. Tesla is up a mind-melting 275% year-to-date with a 12-month return of over 500%.

US China tensions are still escalating on the diplomatic level but have yet to really spillover into international trade, barring the moves in the UK and France against China 5G tech company Huawei. While the two nations are just ‘talking the talk’ and so long as the phase one trade deal remains intact, investors have been able to brush over the tensions, keeping the Aussie bid. 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.