In a statement this morning to the Treasury Select Committee Bank of England Governor Mark Carney defended his policy of Forward Guidance which has been top of the agenda since he came into the role. The recovery which we have seen so far this year has seen Sterling exchange rates hit their highest level since January 2013 but he warned that the recovery could be another ‘false dawn’.
It has been suggested that Carney is unlikely to raise interest rates till 2016 or when unemployment drops to 7%. Therefore, the news from the jobs sector has helped Sterling gain across the board and touch 1.58 against the US Dollar.
Carney has mentioned that the UK housing market could be in a bubble which it could be suggested saw the global credit crunch of 2008. Average UK house price are currently close to 6 times the average salary and if this continues to grow we could be in for an uncertain future. Therefore, the same could be said for Sterling if the housing market continues its rise. Figures published earlier today showed the mortgage approvals were up for first time buyers by 41% compared to a year ago but the amount are still well below figures seen a few years before.
US Retail Sales are due out tomorrow which if better than expected could see the Dollar strenghten against Sterling so if you’re making a Dollar transfer then get in touch by sending me an email Tom Holian email@example.com
The Australian election is happening this weekend and with the polls almost neck and neck the uncertainty round the country is causing quite a large trading range on the Australian Dollar exchange rate. If you’re thinking about either buying Australian Dollars or selling Australian Dollars and want to remove the risk over what happens the next few days then feel free to contact me and I will happily explain how to save money when buying or selling currency. Tom Holian firstname.lastname@example.org