Sterling vs the Australian Dollar took a huge leap during the course of late trading today as rumours came out from Europe that the European Central Bank may print up to EUR1.1 trillion in an attempt to combat falling inflation.
The bad news for the Australian Dollar means that investors are being less risky and selling off their positions in riskier currencies which includes the AUD, NZD & ZAR.
Indeed, we saw a 2 cent movement for the Pound vs AUD during this afternoon.
The official release will by the ECB will be at 1245pm tomorrow UK time so expect volatility in both the run up to the decision as well as afterwards.
Canada also cut their interest rates today which again led to rumours that the Reserve Bank of Australia might follow suit when they next meet on 3rd February.
If the RBA does cut rates or hints that a rate cut is coming expect to see Australian Dollar weakness.
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