How will the US Interest Rate Decision effect the Australian Dollar? (Daniel Johnson)

Australian Dollar Forecast: AUDGBP gains by 10% since April

High Probability of Rate Hike in the US

Last December, Janet Yellen the Chair Lady for the Federal Reserve indicated there could be as many as four rate hikes during 2016. None of which are yet to materialise. Although the Fed is meant to operate as a separate entity to the government and not base it’s decision on politics I am confident the uncertainty surrounding who would become Presidency may have held them back in hiking rates.

Now Trump has gained power, he has made it clear he is in favour of several hikes this year. He has also put pressure on Yellen to raise rates, going as far as to threaten her position if no action is taken.

It is almost a certainty that the US will raise rates today, either by 0.25% or 0.5%. 0.25% is widely predicted so this outcome will already have influenced current exchange rates. If it is raised by 0.5% however expect more volatility on the markets. The Aussie is likely to weaken as investors leave the Aussie for the safe haven of the US Dollar. If you are selling Australian Dollar I think it would be wise to move before today’s interest decision.

If  you have a currency requirement it is crucial to be in touch with an experienced broker. The timing of your trade is vital during such volatile  times, If you have an experienced broker on board they can keep you up to date with what is happening in the market to help you make an informed decision. If you would like me to assist with your trade I will be happy to help you personally. If you inform me of the the currency pair you are trading, volume and time scale and I will provide a free trading strategy to suit your needs. I work for one of the top brokerages in the country and as such I am in a position to better virtually every competitors rate of exchange. You would also be looking at saving anything up to 4% in comparison to high street banks. Please do get in touch by contacting me at dcj@currencies.co.uk. Thank you for reading my blog.