Markets remained stable through the open of the new trading week and month yesterday, with GBPEUR remaining in a tight 0.3% range and GBPUSD within a 0.8% range. The data calendar remains fairly light again today, with markets muted as traders look forward to the Bank of England meeting on Thursday lunchtime. Should the committee mention anything about the possibility of more quantitative easing being required, or the whisper of cutting rates to zero, or even negative, then sterling could take a turn for the worse.
With the resurging confidence that markets are expecting an agreement for Brexit trades talks to be concluded with a deal come October, GBP is holding above key psychological levels. It is also being reported this morning that Japan’s foreign minister will be heading to the UK to kick off trade agreement talks. As the UK enters life post Europe, more of these meetings will be expected to take place.
Over night the Reserve Bank of Australia met to announce their interest rate decision. Holding firm at 0.25%, the decision turned into a non-event. The key highlights from the following press conference are that they see domestic recovery to follow a near predicted path, despite the situation in the state of Victoria taking a turn for the worse. The committee also mentioned they see global recovery being steady, with both monetary and fiscal stimulus being required for some time to come. GBPAUD is trading around 30 pips higher than yesterday, at 1.8331 at the time of writing.
Have a great day
Author: Jack Nicholls, Relationship Manager
Whilst every effort is made to ensure the information published here is accurate, you should confirm the latest exchange rates with WorldFirst prior to making a decision. The information published is general in nature only and does not consider your personal objectives, financial situation or particular needs. Full disclaimer available here.