Risk appetite has come back in droves over the last few sessions pushing up equity values globally and the Aussie dollar, while things even appear to be moving in the right direction in the U.K with a new Prime Minister yet to be announced but seemingly quite close. U.S equities were up about half a percent while European equities had a cracking session with the German DAX leading the way up 2.1% – interesting to note the FTSE (U.K stocks) is now up 0.14% for the year. I mentioned this would likely be the case following Brexit, given the likelihood of the Bank of England to start printing cash and jumping on the central bank band wagon of QE (which of course is the major driver of the recent and continued U.S equities bull market).
In the absence of any data the Aussie also appears to be moving higher, but again appears stuck just on 0.7500 vs. the Greenback and 0.5800 vs. the Pound. Where we go from here depends entirely on further market catalysts and how this recent market confidence pans out.
Not much happening today locally, but Bank of England Governor Carney speaks at 7.00pm. What’s he got to say this time, and will markets respond as they did following his last comments?
DATA RELEASES TODAY:
GBP – BOE Gov Carney Speaks at 7.00pm
AUD EXCHANGE RATES:
AUD/USD – 0.7560
AUD/GBP – 0.5837
AUD/EUR – 0.6842
AUD/NZD – 1.0351
AUD/JPY – 76.121
***Above rates are indiciative wholesale rates and intended as a quide only***
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Patrick Downes
Senior Corporate FX Dealer
Compass Markets
Contact Patrick for a quote on 0431 278 632
