Busy day for the pound with the Bank of England interest rate decision as GBP/AUD pushes back towards 1.70 (Mike Vaughan)

AUDGBP Tests 0.5600 Once More as BoE Cuts QE

Today is likely to be a busy day for sterling exchange rates with the release of the Bank of England’s latest interest rate decision. It is widely expected that rates will remain on hold at 0.5% and so to will the banks stance on Quantitative Easing. As a result I wouldn’t expect too much movement for the pound, unless of course the bank springs a surprise.

Overnight the GBP/AUD rate has pushed towards 1.70. Unemployment figures remained at 5.7% as expected but comments from Reserve Bank of Australia (RBA) Governor Glenn Stevens stating that the dollar is “uncomfortably high” weakened the Aussie and suggests the RBA may consider intervening to make sure they get the outcome they want. This will make tomorrows RBA monetary policy statement important for anyone looking at AUD as any hint at future interest rate cuts and we could see levels push though the 1.70 barrier and beyond. For me I personally feel more value will be seen for AUD buyers but
anyone selling should consider their current position.

Should you have a money exchange to arrange and you would like to discuss the current trends and the currency service we provide then please contact the office on 01494 787478 and I will happily provide my thoughts and run through the various contracts we can offer. Alternatively please email me with a brief overview of your currency requirement on [email protected]