020 7898 0500The Australian dollar has had a mixed week so far but saw sudden strengthening overnight as the quarterly inflation figures were higher than expected which has reduced the possibility of further interest rate cuts in the near term. This follows the strong manufacturing figures out of China on Monday. So although the Australian dollar is in a weakening trend overall the strengthen of the Australian economy should not be underestimated.
The Japanese yen lost ground throughout yesterday amid expectations that the US Federal Reserve is on the verge of cutting back monetary stimulus. As a result we saw US yields increasing, which historically have tended to drag down the safe-haven Japanese yen. All eyes will be on the central bank monetary policy meeting, which concludes today with a press conference.
The Swedish krona could be in for an interesting few days following a statement from the deputy governor of the central bank yesterday, in which he stated that something ‘pretty big’ would have to happen before they cut interest rates. Speculation had been building that a rate cut may be announced over coming months, driving down the value, and so we could see some krona strength off the back of this announcement.
Today, we look forward to the Bank of Japan press conference, as well as an interest rate decision and monetary policy meeting from the Bank of Canada.
Interested in buying or selling currencies? Get in touch with your trader for a live rate.
