The Bank of England minutes published this morning saw a 9-0 vote in keeping UK interest rates on hold and also QE on hold. This allowed Sterling to rise across the board and break through 1.65 against the Australian Dollar. The vote came as a surprise to the markets who were expecting to see signs of more stimulus plans by the Bank. Shortly after the meeting a fortnight ago we were expecting to see further negative views so the announcement has come in rather unexpectedly.
In June’s meeting two of the members had voted for further QE so the turn around helped to increase confidence again for Sterling.
Fed Governor Ben Bernanke is speaking this afternoon which could have some effects on Australian Dollar exchange rates. It is important to look closely at his comments to see how he views the US economy and any plans to be put forward concerning any movement on QE stimulus.
The current amount of QE is £375bn so any further stimulus could potentially lead to losses for Sterling.
If you are thinking of making a currency transfer and want to save money on exchange rates then feel free to get in touch directly Tom Holian [email protected]