Sterling continues to slide today against the Australian dollar and it seemed the UK interest rate decision had no impact on the currency pair.
The vote was split 8-1 in favour of keeping interest rates on hold at 0.5%. The key reasoning for rates being held at 0.5% is inflation is still at a worrying low and the Bank of England do not anticipate the figure will rise anytime soon.
Overnight the latest home loan figures are to be released for Australia. The consensus is a rise to 5.0% from last month’s figure of 0.3%.
It will be interesting to see if this improvement does transpire as it seems Australia believe that consumer confidence has returned, as a result of the Chinese stock market stabilising. I’m unsure!
For clients buying or selling Australian dollars, Thursday next week is set to be an extremely volatile trading day, as Australia releases their latest Employment figures.
I expect China will have weighed down on employment figures and we could see a good buying opportunity throughout Thursday’s trading session.
To maximise trading next week placing a limit order and a stop loss at the same time in order to protect yourself against major market movements. For further information regarding the two contract options and a free quote, feel free to email me directly with your requirement and a telephone number and I will call you when back on the trading floor. [email protected] Dayle Littlejohn.