{"id":3704,"date":"2017-06-12T00:00:00","date_gmt":"2017-06-12T04:00:00","guid":{"rendered":"https:\/\/currencylive.com\/100096-gbp-aud-uk-political-changes\/"},"modified":"2017-06-12T00:00:00","modified_gmt":"2017-06-12T04:00:00","slug":"100096-gbp-aud-uk-political-changes","status":"publish","type":"post","link":"https:\/\/currencylive.com\/news\/100096-gbp-aud-uk-political-changes\/","title":{"rendered":"Pound Versus Australian Dollar Driven By UK Political Developments"},"content":{"rendered":"<p>The pound Australian dollar exchange rate is seen edging marginally higher after striking close to a 7 week low on Friday, following the shock UK election results.<\/p>\n<p>The pound Australian exchange rate hit a low of A$1.6771 following the UK election results, before rebounding to A$1.6960.<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th>What do these figures mean? <\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>When measuring the value of a pair of currencies, one set equals 1 unit and the other shows the current equivalent. As the market moves, the amount will vary from minute to minute. <\/td>\n<\/tr>\n<tr>\n<td>For example, it could be written: <em>1 GBP = 1.72119 AUD<\/em> <\/td>\n<\/tr>\n<tr>\n<td><em>Here, \u00a31 is equivalent to approximately A$1.72. This specifically measures the pound\u2019s worth against the Australian dollar. If the Aussie dollar amount increases in this pairing, it\u2019s positive for the pound.<\/em> <\/td>\n<\/tr>\n<tr>\n<td>Or, if you were looking at it the other way around: <em>1 AUD = 0.57677 GBP<\/em> <\/td>\n<\/tr>\n<tr>\n<td><em>In this example, A$1 is equivalent to approximately \u00a30.58. This measures the Australian dollar\u2019s worth versus the British pound. If the sterling number gets larger, it\u2019s good news for the Aussie dollar.<\/em> <\/td>\n<\/tr>\n<\/tbody>\n<\/table class=\"table table-bordered\">\n<p>UK Conservative leader Theresa May failed to secure the necessary 326 seats for a working majority in UK Parliament. The snap election was supposed to put the UK on firmer footing for the upcoming Brexit negotiations. But, instead, the UK woke up on Friday to a hung parliament \u2014 exactly where it didn\u2019t want to be. However, the UK Conservative party has managed to hash out a coalition agreement with Northern Ireland\u2019s Democratic Unionist Party (DUP), but the union looks fragile. And, thus, a cloud of doubt is still hanging over the UK\u2019s political future and the course of Brexit.<\/p>\n<p>Theresa May appears to be hanging onto power by a thread. Over fears that possible replacement candidates could make UK Conservatives less popular, they have decided to continue backing May as Prime Minister for the time being. May has undoubtedly lost authority and, instead of going into Brexit negotiations with a strong mandate and a large majority, she\u2019ll be sitting at the negotiation table in a weaker position. However, this may actually turn out to be a silver lining for the pound.<\/p>\n<p>With Brexit negotiations due to start in a week, May\u2019s weakened hand means she could struggle to charge ahead with the hard Brexit she was looking for. The likelihood of a softer Brexit has increased dramatically, which is pound positive. So, although sterling has been selling off, it could find support on hopes of coming through Brexit negotiations on more palatable terms and a softer Brexit<\/p>\n<table class=\"table table-bordered\">\n<thead>\n<tr>\n<th>Why is a \u201cSoft\u201d Brexit better for sterling than a \u201chard\u201d Brexit? <\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>A soft Brexit implies anything less than UK\u2019s complete withdrawal from the EU. For example, it could mean the UK retains some form of membership to the European Union single market in exchange for some free movement of people, i.e immigration. This is considered more positive than a \u201chard\u201d Brexit, which is a full severance from the EU. The reason \u201csoft\u201d is considered more pound friendly is because the economic impact would be lower. If there is less negative impact on the economy, foreign investors will continue to invest in the UK. As investment requires local currency, this increased demand for the pound then boosts its value. <\/td>\n<\/tr>\n<\/tbody>\n<\/table class=\"table table-bordered\">\n<p>With little in the way of high profile releases for the Australian dollar, the pound is set to drive the exchange rate. In addition to any further political developments impacting on the pound, UK economic data and the Bank of England interest rate decision will all be under the spotlight later in the week.<\/p>\n<p><small><em><br \/>\nThis publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Inc., Currency Live or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. Consult our <a href=\"https:\/\/currencylive.com\/risk-warning\/\">risk warning<\/a> page for more details.<\/em><\/small><\/p>\n<p><small><em>This article was initially published on TransferWise.com from the same author. The content at Currency Live is the sole opinion of the authors and in no way reflects the views of TransferWise Inc.<\/em><\/small><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The pound Australian dollar exchange rate is seen edging marginally higher after striking close to a 7 week low on Friday, following the shock UK election results. The pound Australian exchange rate hit a low of A$1.6771 following the UK election results, before rebounding to A$1.6960. What do these figures mean? When measuring the value [&hellip;]<\/p>\n","protected":false},"author":163946597,"featured_media":3705,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1379],"tags":[1394],"class_list":{"0":"post-3704","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-gbp","8":"tag-gbp"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Pound Versus Australian Dollar Driven By UK Political Developments - Currency Live<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/currencylive.com\/news\/100096-gbp-aud-uk-political-changes\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Fiona Cincotta\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100096-gbp-aud-uk-political-changes\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100096-gbp-aud-uk-political-changes\\\/\"},\"author\":{\"name\":\"Fiona Cincotta\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#\\\/schema\\\/person\\\/8ef0fafb6c93f1204150bb907b42cfec\"},\"headline\":\"Pound Versus Australian Dollar Driven By UK Political Developments\",\"datePublished\":\"2017-06-12T04:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100096-gbp-aud-uk-political-changes\\\/\"},\"wordCount\":759,\"image\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100096-gbp-aud-uk-political-changes\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/currencylive.com\\\/news\\\/wp-content\\\/uploads\\\/2019\\\/08\\\/100096-gbp-aud-uk-political-changes.jpg\",\"keywords\":[\"gbp\"],\"articleSection\":[\"GBP\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2017\",\"copyrightHolder\":{\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100096-gbp-aud-uk-political-changes\\\/\",\"url\":\"https:\\\/\\\/currencylive.com\\\/news\\\/100096-gbp-aud-uk-political-changes\\\/\",\"name\":\"Pound Versus Australian Dollar Driven By UK Political Developments - 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