Could the US China Trade Wars be finishing soon?
We could be in for a very busy week for GBPAUD exchange rates owing to a number of different factors.
The G20 summit has now concluded and it appears as though talks between the US and China have been improving. Therefore, could this be a sign that the trade wars between the two world’s leading economies are coming to an end?
This should in theory help to strengthen the Australian Dollar against the Pound as the Australian Dollar is often driven by an increase in global risk appetite.
Trump has claimed that he had an excellent meeting with Chinese leader Xi Xingping. He also went on to say that ‘we are back on track’ when questioned about the situation between the two nations.
The Managing Director of the International Monetary Fund Christine Lagarde has also said of the situation ‘While the resumption of trade talks between the United States and China is welcome, tariffs already implemented are holding back the global economy, and unresolved issues carry a great deal of uncertainty about the future.’
Another interest rate cut coming in Australia next week?
Also, next week the Reserve Bank of Australia are due to meet again. Having recently cut interest rates to just 1.25% could we see another interest rate coming on Tuesday?
According to some reports there is a 74% chance of an interest rate cut next week so if this happens we could see losses for GBPAUD exchange rates early next week. There is a huge amount of concern as the housing market in Australia is under a lot of pressure.
Therefore, pay close attention to next week’s RBA decision if you have a currency transfer to make involving Australian Dollars.
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