Equities and commodities staged strong rallies overnight with both asset classes making gains of between one and four percent depending where you look. Overall it was a strong showing across the board and with Gold and the Yen retreating over the past few sessions it’s pretty obvious that risk aversion is slowly leaving the market.
The Aussie dollar which had touched 0.7640 vs. the Greenback early on Friday morning ahead of the release of Brexit results has also slowly regained lost ground clawing back from lows of about 0.7300. AUD/GBP obviously has been the biggest mover since the Brexit vote with the currency pair staging wild swings between 0.5000 and 0.5600. Where the GBP goes from here is anyone’s guess (and I do mean guess) and likely comes down to how the Bank of England and the EU responds to and supports the Brexit fallout.
Bank of England Governor Carney speaks tonight with likely much of the speech to relate to Brexit and how the Bank of England will respond, we could see some gains on GBP tonight depending on what stimulus packages if any are announced. So if you’re looking to buy GBP it might be worthwhile booking ahead of this event.
Overall it’s been a hectic month for Forex markets. See the Aussies trading range this month below:
AUD/USD – 0.7200-0.7650
AUD/GBP – 0.4949-0.5627
AUD/EUR – 0.6434-0.6761
AUD/JPY – 72.47-80.06
DATA RELEASES TODAY:
GBP – Current Account at 6.30pm
GBP – Bank of England Gov. Carney Speaks at 1.00am
USD – FOMC Member Bullard Speaks at 3.30am
AUD EXCHANGE RATES:
AUD/USD – 0.7453
AUD/GBP – 0.5541
AUD/EUR – 0.6701
AUD/NZD – 1.0468
AUD/JPY – 76.658
***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
