Listen to the market mood for GBPAUD in the coming session:
Weak GBP
The GBP is likely to still remain pressured due to the odds of a rate cut are now over 50% for December’s meeting and Bank of England’s Haldane due to speak today.
Strong AUD
The AUD has been bid today on a firm risk tone on general optimism for the signing of the US-China phase 1 trade deal. That sentiment remains for now so expect AUD support. However, be cautious of a ‘buy the rumour, sell the fact response’ from the signing of the phase 1 trade deal.
Risks to this outlook
This outlook depends on the market remaining optimistic on the Phase 1 deal and dovish on the GBP on rate cut expectations. If US-China trade relations sour, expect JPY strength instead of AUD strength for the outlook above.