GBP/EUR: Pound Shows Signs Of Recovery After Brexit Inspired Fall

The British pound is higher against the Australian dollar on Thursday.

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GBP/AUD was up by 69 pips (+0.38%) to 1.7893 as of 4pm GMT.

The currency pair dipped below 1.78 before rebounding and turning positive on the day, hitting 1.79 before stabilising. Yesterday the exchange rate fell -0.17%

GBP: Pound weighed down by Brexit

The mood toward post-Brexit EU/UK trade relations seems to turn a little more sombre this week. The UK Chief negotiator David Frost and EU chief negotiator Michel Barnier were both out commenting on the progress of negotiations today. Both seem to think the sides remain far apart on some key issues.

Without a deal in sight, it is the British pound that tends to suffer in foreign exchange markets and not the euro.

An apparent lack of progress on a level playing field or fisheries prompted the EU’s Michel Barnier to say “we are still far away in negotiations with the UK” on Thursday.  After rumours the UK had given up on a deal unless progress was made in July, a senior UK official said they expect talks to continue in the second half of August and into September and that there is no formal cut off date for talks.

AUD: Aussie feeling brunt of china spats

The UK and Australia are both seeing diplomatic ties with China weakened in the wake of the pandemic and new security laws pass in Hong Kong. Still, from the standpoint of trade with China, Australia has a lot more to lose, hence some weakness in the Aussie- even though China’s ire seemed directed more at the UK and the USA than Australia.

According to the Global Times newspaper, China’s foreign ministry is saying it may not recognise BNO (British National Overseas) passports as an official travel document, making it difficult for those residents of Kong Kong to move to the United Kingdom. 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.