The Australian Dollar Sterling pairing has remained over 1.70 for a fortnight now and it seems likely the 1.70 level will not be threatened again for some time. In fact I personally think it is more probable that we see GBPAUD over 1.75 before we see it fall below 1.70. The key data this week to drive this paring is Wednesday and Friday.
Wednesday Bank of England Governor Speech to Parliament
This has the potential to have a big impact on the market or nothing at all. It really depends on what is spoken about and the topics of discussion. On the cards will be UK growth, interest rate change and QE stimulus. Each of these have a large impact on the market so if any of these topics are discussed and if he gives a different view than what is currently priced into the market expect a large move. The other event that none of the above could be discussed keeping rates flat at that time. It is an event which people with currency exposure should be aware of and prepared for.
If you for example are weeks away from needing to complete a currency trade, just watch. However if you are nearer to your deadline or your current limit then LIMIT ORDERS and STOP LOSS orders are the tools to exploit. Contact us here for more information via [email protected] or on the normal telephone number asking for myself – Steve Eakins.
Friday – UK data and the close of the month
The data for the UK includes Mortgage approvals and Net Lending figures. These generally are expected to show an improvement so expect perhaps some sterling gains. We also at that time have the closing day of the month meaning Carry trades and Profit taking could have a large impact. This is when financial institutions and speculators take the profits they have made on the month and reset their investment levels. With this additional demand for the currency it can have an short term impact on the AUD creating opportunities for the quick minded.
SPIKE Notifications and Rate Alerts are the tools to use at this point, again contact us here for more information via [email protected] or on the normal telephone number asking for myself – Steve Eakins.
If you are trading the AUD or any other currency feel free to get in contact for an independent review of the markets, the trends that could help, data around the corner and strategy options. Plus with our award winning exchange rates you will be happy to know there should be a saving against your current provider as well. After all – if we could not save you money we would not be in business.
Contact us via the normal methods of the telephone (asking for Steve Eakins), email at [email protected] – or by filling in the enquiry form.