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Improved mood around the pound to stay despite Brexit vote delay

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Investors are likely to take in their stride the surprise delay of a key British parliamentary vote that would have paved the way for a negotiated divorce from the European Union by the end of the month.

Futures pricing suggests the benchmark S&P/ASX 200 Index will open 35 points, or 0.5 per cent, lower and pointing to the potential for a third consecutive session of losses. The Aussie dollar may extend recent gains after surging to US68.6¢ following warnings from the Reserve Bank governor that further rate cuts are not guaranteed amid an improving narrative around the country's economic growth prospects.

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Patrick Commins reports and comments on trends and news in domestic and global investment markets. Connect with Patrick on Twitter. Email Patrick at p.commins@afr.com

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    Original URL: https://www.afr.com/markets/equity-markets/improved-mood-around-the-pound-to-stay-despite-brexit-vote-delay-20191018-p5322r