US Faces Debt Ceiling Again – USD Exchange Rates
Last night there was concerning news coming out of the States with US Treasury Secretary Jack Lew stating that if the borrowing limit is not raised the US could default on their debt by the end of the month. Back in October the US Congress suspended the debt ceiling in order to reopen the Government which was in a state of partial shut down for around 3 weeks. So, with the debt limit back in place talk of a US default is likely to be headline news and is likely to cause major USD volatility not what Janet Yellen, who was sworn in as the US Federal Reserve chair yesterday, wants to deal with. So, should the talk of a default in America increase we could well see the Dollar weaken significantly unless Congress and the Fed can find a resolution before a default.
Australian Dollar Strength
Early this morning the Reserve Bank of Australia announced that they would be keeping interest rates on hold and also stated that they were to remove the chance of further interest rate cuts as the main concern in Australia was the threat of rising inflation which an interest rate cut could possibly make worse. Following the news the Aussie Dollar has strengthened considerably meaning we have now seen GBP AUD exchange rates fall over 4 cents in the last few days. So, if you are looking to sell AUD today is likely to present some excellent opportunities while for those looking to buy AUD we are still at multi year highs despite falling from the very peak. So, if you would like to discuss your currency requirements and the different options available to you please call us today. You can call straight through to our trading floor for free on 0800 328 5884 or if calling from abroad 0044 1494 725353 alternatively email me directly on firstname.lastname@example.org