Overnight the RBA cut interest rates in Australia leading to a slight drop in the value of the Australian Dollar and a small buying opportunity for AUD buyers.
The cut was widely expected by the markets so we didn’t see a huge movement in rates, I feel that many investors and speculators are waiting to see what happens with the Bank Of England on Thursday at 12:00. Again, an interest rate cut is expected so I wouldn’t see this having a huge impact on exchange rates however the most important factor on Thursday will be the minutes from the meeting, if we see any nod to QE (Quantitative Easing) and what they suggest could happen next for the U.K economy.
QE is basically printing more money and is generally seen as negative for a currency, so if they do introduce more this is where the Pound may slide. Any other comments on future fiscal policy may also give the Pound an extremely volatile afternoon so keep a close eye on exchange rates this Thursday.
First thing today we have U.K PMI construction figures at 09:30am – This is also one to watch as yesterday the manufacturing figures were the worst since Feb 2013 and led to a drop in the value of Sterling. Throughout August we will continue to see the first full data sets post brexit so the Pound may be in for a tough month.
Should you be in the process of buying a property, sending money overseas for your business or exchanging currency for any other reason then it is well worth getting in contact with me (Daniel Wright) the creator of this site directly. It is rare that we cannot help clients get a better rate than they are being offered elsewhere and we also but a lot of effort into helping our clients time their purchase. You can email me on firstname.lastname@example.org with a brief description of your requirements and a contact number and I will be more than happy to deal with you personally.