Will Boris be the next Prime Minister?
The Tory leadership election is now down to the final two with Boris Johnson due to go head to head with Jeremy Hunt.
Johnson has been the clear leader since the votes began and the strong likelihood is that he’ll become the new Tory leader when it is officially announced on 22nd July. Johnson won the ballot with 160 votes compared to Hunt with 77. Therefore, unless Johnson makes a calamity in the next month I cannot see why he won’t win.
This has given the Pound some support against a number of different currencies but we are still in a fairly uncertain period for the Pound as we still do not what will happen with Brexit.
Australian interest rates to be cut again in 2019
In the meantime turning the focus back towards what is happening in Australia and things are not going well down under.
Following the federal election which gave the Australian Dollar a brief period of respite the currency has started to weaken again.
The Australian Dollar is close to its lowest level against the US Dollar in history and has started to weaken once again vs the Pound.
Blackrock Inc has shorted the Australian Dollar as they expect that the Reserve Bank of Australia will cut interest rates to 0.5% from the current levels of 1.25%. Australia has been one of the benefactors of having a highly competitive interest rate so with further interest rate cuts expected I think this could have a big impact on the value of the Australian Dollar.
The Australian Dollar has also felt the impact of the ongoing US-China trade wars which appear to have little signs of ending soon. As China is one of Australia’s leading trading partners any slowdown in the world’s second largest economy can often effect the value of the Australian Dollar.
RBA governor Philip Lowe has claimed that the most recent interest rate cut was an attempt to cut unemployment levels as well as helping inflation but I agree with both Blackrock and the Commonwealth Bank of Australia that there are further interest rate cuts coming during 2019.
Therefore, if you’re considering selling Australian Dollars it may be worth getting things organised in the near future.
If you would like to save money on exchange rates compared to using your own bank and would like a free quote then contact me directly and I look forward to hearing from you.
Tom Holian [email protected]