GBP/AUD

The British Pound’s Freshly Greased Slippery Slope

The UK’s FTSE 100 remains a big post-Brexit winner. This headline from the Telegraph for January 10, 2017 says it all: “FTSE 100 records longest run of closing highs since 1984 as Brexit fears hurt pound.” The FTSE 100 was created in 1984. Never since that time has the index notched nine straight all-time highs … Read more

The Australian Dollar Remains Resilient Despite Soaring Odds for a Rate Cut

Global bond yields are falling like rocks, many investors are paying governments to hold their money, and odds are increasing for more monetary accommodation from the major economies in the likes of the United Kingdom, the eurozone, and Japan. In the U.S., expectations for a rate cut have essentially been moved off the table. So, … Read more

Forget the Yuan – The Devaluation of the British Pound Is Breathtaking

(This is an excerpt from an article I originally published on Seeking Alpha on February 24, 2016. Click here to read the entire piece.) Americans do not get to vote as a nation on anything unless it is something like American Idol or Dancing With the Stars; definitely nothing political. Our nation’s founders sought fit … Read more

The Australian Dollar Sinks With An RBA Rate Cut – Time for A Big Unwind?

Last week, the Australian dollar (FXA) was slammed by poor inflation data. Market expectations for a rate cut strengthened significantly as well. This week, the Reserve Bank of Australia (RBA) took heed and cut its cash rate from 2.0% to 1.75%. In its statement on the monetary policy decision, the RBA explained that its decision … Read more

Markets Brace for Another Australian Rate Cut

The disappointing inflation numbers for Australia did not just take down the Australian dollar (FXA). Financial markets also rushed to ramp up the odds of a rate cut in the next policy meeting for the Reserve Bank of Australia (RBA). Source: ASX RBA Rate Indicator Even if the RBA takes a pass on a rate … Read more