FED minutes could be driving force for exchange rates this week (Mike Vaughan)

GBP to AUD Steady as Markets Consider BoE and RBA Rate Cuts

Sterling exchange rates have rallied to just shy of 1.72 today but ths weeks market trends could be dominated by risk strategies following the FED minutes due for release at 18:00 BST on Wednesday. With the FED adopting a ‘will they wont they’ approach to the ‘tapering’ of QE these minutes may well provided clues as to the future monetary policies the FED will have in store. Any discussion on ‘tapering’ and this could lead to strong gains for the USD and a possible shift against the ‘risk’ currencies, notably the AUD, NZD and ZAR. This could provide further opportunities for buyers of the Aussie later this week.

Also any AUD buyers or sellers should watch out for the RBA minutes scheduled overnight. The minutes are likely to hint that the RBA will keep interest rates on hold for the time being following a round of rate cuts earlier this month – this could lend support to the Aussie overnight and tomorrow, a possible short term opportunity for AUD sellers.

Should you have an upcoming exchange to arrange and you would like to discuss the currency service we provide then please get in touch. Our aim is to supply our clients with information to assist them with their money exchange. It is impossible to guarantee the best time to exchange but by giving yourself as much information as possible it puts you in the best position to make an informed decision. Our currency service is geared towards private and corporate clients and simply we are here to get you the best market price we can. To test the service or to get a live quote contact the office on 01494 787478 or email Mike at [email protected] and I will happily discuss current trends and see if I can save you money on your currency transfer.

Email Mike to get the best deal on your foreign exchange [email protected]