Beoz

Moving swiftly on

GarryP

The amazing thing to me is the exchange rate - $1.9734 to £ is the highest its been in over a decade and implies they assume that interest rates will be going up. Even so their confidence seems misplaced, with no trade treaty with the EU agreed.

BritInParis

old.sparkles

Not sure what data you're looking at, but highest it's been since June 2016 for sure. Of course, if you need to swap AUD to GBP, not so good

DeadVim

I left 15 years ago, the place has been mourning my loss ever since (rightly so), this is just an inevitable consequence.

Beoz

Eh? June 2016 is was about the same. Is this the loony left shouting out lies again to boost the agenda?

Chatting with those in London a month ago, which was a clear majority anti Brexit, the feeling was just get on with it and there was a feeling of positivity about finally moving on a choosing an agenda which suits the UK.

scot47

Watching "vox pop" interviews on TV I am amazed at how little the masses know.

Beoz

GarryP

Sorry, yes you are right, it spiked to over $2 in 2016, I'd forgotten.

Still, having a high rate at the moment seems to be due to two factors. First the markets aren't pleased with the performance of Australia and the way the interest rates have fallen. And second, they seem to be assuming an interest rate hike in the UK in the near term.

Looking forward it's fairly obvious that BoJo hasn't a clue, and it's also likely that the chinese virus will screw up economies over this year. Upshot is likely higher interest rates all round, and highly geared companies going to the wall, particularly in the UK.

BritInParis

The BoE has only just confirmed that the interest base rate will remain at 0.75%.

Business confidence skyrocketed to pre-referendum levels as a result of Boris’ election victory so it appears not many share your assessment.

Beoz

Australia has a lot more to lose over the Chinese Virus than the UK does. If its going to effect an AUD to GDP rate, its likely AUD will suffer.

Charismatic

I'll keep the bunting in the loft until the transition period is finished and the trade deals have been favourably concluded. At the end of 2022 we'll know how the UK did. 🙂

Amazulu

I'm not so sure. The Chinese have got their hooks into the UK government over something - hence their bizarre anti-West Huawei 5G deal. They're also financing the Hinkley nuclear plant. Saying that, Coronavirus is not going to be good for Australia - the one benefit is that we should be getting a lot less Chinese students at our universities

Retirednow

How is that a ‘benefit’?

scot47

Dunno about OZ but universities in Scotland bust a gut to recruit as many students as possible from the People's Republic. Who decided that the role for our universities is to educate and train the daughters and sons of the New Ruling Class in China ?