AUD GBP Stabilises as May Meets with EU Leaders in Brussels
The Australian Dollar to Pound (AUD GBP) exchange rate remained relatively stable on Friday following an EU summit in Brussels.
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Pound (GBP) Steady as May Unveils Plan for Expats
The Pound held its ground on Friday as UK Prime Minister Theresa May outlined her proposals to allow up to 3m EU citizens living in the UK to remain after Brexit.
May plans to grant EU migrants who have lived in the UK for five years the new ‘UK settled status’ granting them right to stay in country and access the NHS and other services, in exchange for a similar deal for Britons living across Europe, with German Chancellor Angela Merkel calling the proposal a ‘good start’.
The rights of expats post-Brexit is seen as a major hurdle in current negotiations between the UK and the EU, with European officials insisting that the issue must be resolved before any discussions of a new Brexit trade deal can begin, so markets will be pleased that May’s proposals appeared to have been received well by EU leaders.
Australian Dollar (AUD) Slowed as Iron Ore’s Gains Come to an End
The Australian Dollar’s attempts to advance were hindered on Friday following the abrupt halt in iron ore’s recent winning streak.
Prices for Australia’s largest export fell by 0.51% at the start of Friday’s session bringing the spot price for benchmark 62% fines slipped to $56.53 a tonne and ending a run of six consecutive gains.
The drop following a renewed weakness in Chinese steel prices, which continued to drop amidst tepid demand, and dragging on the prices of iron ore which is used to produce it.
Metal Bulletin wrote;
‘China’s spot rebar prices dropped further on Thursday amid further losses in the futures market. A further drop in the futures market resulted in sparse trading, which weighed on spot rebar prices.’
AUD GBP Forecast: UK Consumer Confidence Expected to Take a Hit
The AUD GBP exchange rate may strengthen at the start of next week as the UK releases its latest Consumer Confidence report, with Sterling likely to slide if that data shows a fall in household sentiment as expected.
Meanwhile a lull in Australian data next week could see the Australian Dollar begin to slide as it is left at the mercy of currency markets until the latest Home Sales data on Thursday.
Current Interbank Exchange Rates
At the time of writing the AUD GBP exchange rate was trending around 0.5939 and the GBP AUD exchange rate was trending around 1.6832