Euro Slides Versus the Pound as Spanish Independence Vote Looms

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

  • Markets swayed by prospect of more US stimulus
  • Hong Kong reports new daily record COVID cases
  • RBA’s Kent calls lower AUD ‘still an important stimulatory channel’
  • Australian state of Victoria reports record cases (532)

GBP/AUD was up by 23 pips (+0.13%) to 1.8022 as of 4pm GMT. Last week the pound-Aussie exchange rate gained +0.04%.

The currency pair slid below 1.80 but rebounded back above it as the round number acted as a mid-point to the price action. On Friday it gained +0.11%.

GBP: Pound losses stabilise

The pound eked out a second weekly gain over the Australian dollar last week in what can best be described as a stabilisation of pound weakness than any real pound-strength.

In a busy week for foreign exchange markets that includes a Federal reserve rate decision, a possible US stimulus bill and company earnings from the like of Apple, Brexit fears seemed to move to the sidelines.

In the UK, a weekend decision to add a 14-day quarantine requirement for UK travellers returning from Spain was a headwind for the pound. The new rules show an inconsistent response from the government and cause major issues for the UK tourism industry, where the number one overseas destination is Spain.

AUD: Kent jawbone the Aussie

The Australian dollar dipped versus the pound despite a generally ‘risk-on’ environment in markets which has been a bigger boost to the Australian currency in recent months than it has the British pound.

Christopher Kent hardly rocked the boat on current RBA policy but did subtlety mention the currency, which if it continues to strengthen at its current pace would be a downside risk to the export-focused Australian currency. Kent called ‘a lower AUD an important stimulatory channel’.

The Aussie correlation with risk sentiment means more upside could depend on the latest government stimulus efforts United States. Since the extra $600/week unemployment benefits run out this week, there’s a hope in markets the government could act quickly to find a stop-gap. Treasury Secretary Steve Mnuchin has talked about a 70% wage replacement that could be capped at $200/week. 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.