GBPAUD rates have stayed steady today as a majority of the Europe and Commonwealth countries pay their respects to the fallen in the great wars. As a result banks are closed and the traders who normally change demand and therefore prices are not at their desks. This will probably be the case through the rest of the day and maybe tomorrow. Eyes are really on Wednesday when the UK release a host of data including Unemployment data and the Bank of England release their Quarterly inflation Report.
Unemployment is widely expected to show a fall and will probably result in Sterling’s value climbing in early trading. At 10:30 however when the Quarterly inflation Report is released markets will be on a needle edge. This is really when the market gets a better idea on what the banks interest rate change forecast is. I personally think that they are more likely to push back the foretasted rise rather than bring it forward, meaning it is a risk really for anyone with Sterling to sell. Therefore a busy day is expected with rates climbing.
Also keep an eye on China news this week. They are expected to confirm the trading contract with Australia for over AUD $1,000,000,000 for 1,000,000 cattle a year annually to be provided.
For more information contact the author STEVE EAKINS via [email protected]s.co.uk