Sterling’s value has continued to call this week following the assumptions for an interest rate change in the UK falling back. It seems the markets are now not thinking that the UK will raise rates until June next year compared to Feb a few weeks ago and even some thinking it would be in 2014 earlier this year. As this is pushed back it also declines the amount of interest in investing in the pound, pushing back its demand and therefore its price. The Australian dollar has not really fought back or taken advantage following the bank holiday there on Monday but I expect that to change in the near future. Rates now sit close to 1.83 from 1.84 at the close of last week.
All eyes are now on the interest rate decision in Australian today, there is not expected to be any change in policy but forecasts for change are very probable going to differ. This change is likely to change market values as the above shows so expect rates to change once again later.
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