The Bank of England has just announced a further £50bn for the QE Asset Purchase Programme. This has not come as much of a surprise following last month’s Bank of England’s minutes so the currency markets have remained relatively unchanged and not having too much of an impact of buying Australian Dollars at the moment. However, at 1245 UK time we will see the announcement from the ECB interest rate decision. Personally, I think we’ll see a cut of 0.25% to see European interest rates down to 0.75%. This could cause the GBPAUD exchange rates to fall as this could be a sign of confidence in order to resolve the European debt crisis.
We are now only 30 minutes away from the announcement so apologies for this quick entry. Keep an eye on the market to see how the decision will affect things. [email protected]