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  1. Poms in Oz (our sister site) is hosting a Live Chat session with Nat Davison from Moneycorp on 31st March 2010 to answer all your queries on the Australian dollar. The session will start at 8am (EST), 9pm UK time, and will last approximately 2 hours. Whether you are moving to Australia, or living there already, Nat will provide the latest updates on the Aussie dollar and give you some insight into the key influencing factors. Exchange rates are constantly fluctuating and transferring your money at the right time, via the right channel, will make a big difference!
  2. In this week's update:STERLING AHEAD ON ALMOST EVERY FRONTUK retail sales report strongest in three years. Low inflation print suggests no change for AUD interest rates this week. As far as the UK economic data were concerned it was a low-key week for sterling. Nationwide announced a -0.5% monthly fall in house prices, the Bank of England reported a slight fall in the number of mortgage approvals in June. Gfk's index of consumer confidence was three points lower at -22. The only statistic that made any difference - and it was a positive one - was the CBI's distributive trades survey. It was surprisingly strong with a net 33% of shopkeepers reporting higher sales in July; the strongest reading for three years. In one of sterling's luckier weeks it had also a minimal amount of non-statistical flak to avoid. The National Institute for Economic and Social Research (NIESR) shot wide when it assessed the risk of Britain's economy falling back into recession next year at one in five. Prior to June's emergency budget that risk was one in seven. NIESR thinks living standards will not return to pre-crisis levels until 2015, roughly the same time horizon recently mentioned by the Federal Reserve in the States. Another damper-than-usual squib was Bank of England Governor Mervyn King's appearance in front of the Treasury Select Committee. His comments were in line with recent Monetary Policy Committee minutes and sparked no reaction from sterling. The governor was evasive at times: Answering a question about the impact of the emergency budget, and the risk of it derailing the recovery, he said 'I don't think it made a significant difference to whether we would get what is technically called a double-dip recession.' Two inflation measures last week rained on the parade of those looking for higher Australian interest rates. At the beginning of the week the producer price index - factory gate prices - went up by 0.2% in the second quarter of the year after analysts had predicted it would rise by 0.8%. Although that took the year-on-year increase to 1.0% that was still well below the 1.5% annual rise investors had been looking for. The disappointment on Wednesday was even greater when the consumer price index rose by considerably less than the 1% that markets had been expecting. At 0.6% CPI inflation was well short of the level that would make an interest rate increase by the Reserve Bank of Australia inevitable at this week's policy meeting. A survey of 23 economists by Bloomberg found all of them predicting the RBA would leave its benchmark interest rate unchanged at 4.5% on Tuesday. Taking advantage of Britain's impressive GDP performance in Q2, sterling made it back to the top of the range that has held it for a fortnight. It shows no sign of breaking higher as long as investors lean towards the growth-and-recovery story and continue to favour the currencies with higher yields. Buyers of the Australian dollar should continue to hedge 50% of their requirement. For more information and expert guidance on the currency markets, go to www.moneycorp.com where you can open a free, no obligation Trading Facility.
  3. NEW GOVERNMENT BUT WHAT NEXT? Investors wait to see how the Lib-Con coalition will tackle the debt. US dollar and yen prosper as nervous investors shun the euro and 'risky' currencies. Sterling opened this morning almost unchanged on the week, close to $1.64. On the way it had peaked at $1.68 and troughed below $1.6250, in that order. It is close to record lows. Following the previous week's general election political worries about sterling were replaced by... political worries. There was nervousness when it took five days to form a government and uncertainty afterwards. From financial markets' point of view the Liberal-Conservative coalition is probably the least worst alternative under the circumstances, given that a single-party government is out of the question. Dave and Nick are giving every impression that they are dedicated to the job of reducing the country's debt to something more akin to 'normal' levels. They have mentioned spending cuts - including ministerial salaries - and efficiency savings amounting to £6 billion this year. There is reason to be optimistic that the first coalition for 65 years will stick to its mission and do the job the nation needs. But investors need more than vague promises before they will be able fully to renew their faith in sterling, as will the credit ratings agencies. A quick-fix spending review and the Queen's Speech next week will give an outline as to how the Camelegg government intends to prioritise its tasks; it will be the best part of a month beyond that before the really serious stuff comes out in the Proper budget (as opposed to the flimsy pre-election one that nobody really believed). Investors and ratings agencies will not be satisfied unless George Osborne's budget speech is dripping with the blood of quangos and diversity outreach counsellors. They are prepared to be patient: after all, it would be silly to bounce a new government into precipitate decisions before it has searched the cupboards of Downing Street and Whitehall for financial skeletons. But patience and enthusiasm are not quite the same thing. Sterling will have to wait for its renaissance. In the meantime, the economy is bumping slowly up the same hill it had been tackling before the election. House prices, according to the RICS, the DCLG and Rightmove, are rising at a sustainable pace. Industrial and manufacturing production in the UK grew by 2.0% and 3.3% in the year to March. NIESR (The National Institute for Economic and Social Research, an apolitical body) estimates that the economy grew by +0.5% in the year to April. Dole claims went down by another 27k in April. The bad news is still there as well. Britain's trade deficit went up by a fifth in March as a result of increased imports. The weak currency is not doing its job of balancing trade. Financial markets initially had faith in the European Union's €750 billion financial stability fund but it did not take long for that support to evaporate. A classic case of 'too much, too late' saw Germany step up to the plate with a real offer of genuine money but the damage to confidence had already been done. It is no longer just Greece that investors worry about. The concern now is that we could be facing another global financial crisis. With that in mind, investors favoured the US dollar and the Yen as the safest places to park their money until the problem blows over. The Australian dollar suffered the same fate as other 'risky' currencies, including the pound. The Australian economic news was not compelling enough to distract investors from their simplistic risk/safety agenda. NAB's business confidence and conditions surveys both fell; the first by three points to 13 and the second by five to 8. Home loans and investment lending cancelled each other out. Mortgages were down by -3.4%; investment lending rose by +3.0%. Thursday's employment figures were solid once again. Another 33.7k people found jobs while unemployment was steady at 5.4% and the participation remained unchanged at 65.2%. Sterling is in limbo until the new prime minister unveils his plans to sort out the debt. It is being dragged down by the ailing euro (as is the Swiss franc, for slightly different reasons) against the US dollar and the Japanese yen unless and until investors rethink their doomsday scenario for southern Europe. With the pound close to record lows it is difficult to be optimistic in the near term. Buyers of the Australian dollar should hedge at least half of their currency needs.
  4. A POSITIVE START TO THE YEAR FOR STERLING It might be a fluke but so far so good. UK manufacturers still optimistic. Aussie dollar finds itself unexpectedly underwater. An expensive festive season cost the pound a net three cents. It could have been worse. On Monday, while Britain was celebrating new year's day, it was five cents below pre-Christmas levels. If this sounds like a rehash of the pre-Christmas sterling apologia, apologies, but the pound was again beset by a series of individually insignificant yet collectively damaging news items. At £22.8 billion, November's UK public sector net borrowing requirement was a third bigger than the expected £16.8 billion and two and a half times the size of the October shortfall. That announcement did not receive a warm reception just a week after the revelation of 33,000 public sector job losses. A day later there was a downward revision to third quarter gross domestic product (GDP) growth. Initially, Q3 growth had been assessed at 0.8%; now it was only 0.7%. Although by no means awful, it was a step in the wrong psychological direction. House prices remain a major sore that investors cannot help but scratch. Hometrack, a firm providing "information solutions to the UK housing and mortgage industries", recorded another monthly fall in house prices, this time of -1.6% in December after a -1.1% fall in November. The Land Registry, perhaps best-placed to evaluate the entirety of the UK property universe, logged a -0.6% fall for the average house price in November. Nationwide's figure for December was an unexpected tonic that nobody quite trusted; a 0.4% price rise from November to December. Nationwide admitted "it would be premature to suggest that the recent downward trend has been broken on the basis of one month’s figures" but stressed that the situation today is more stable than it was two years ago. During the last few days of 2010 the pound suffered a couple of reversals, both inexplicable and both later corrected. There are two possible conclusions to be drawn from the sell-offs. First, sizeable orders in a thin market can move the exchange rate disproportionately; second, because both instances involved selling the pound there is an implication that not all the bears are in hibernation this winter. The Australian dollar did well during the holiday period, taking advantage of investors' renewed appetite for risk and high-yielding currencies. Its winning streak came to an end on Monday. Investors came to the conclusion that the widespread flooding in Queensland would have a serious impact on agricultural production and overall economic output. Their misgivings about the Aussie were intensified when the Australian Industry Group's performance of manufacturing index fell by more than a point in December to 46.3. Anything below 50 indicates a contraction in activity. Although inflationary pressures suggest rising interest rates in the foreseeable future, nervousness about the Australian economy is, for the moment, overriding the usual enthusiasm for higher yields. Sterling began the new year on a positive note. Mortgage approvals in November were microscopically higher at 48,000 and, more importantly, the purchasing managers' index (PMI) for the manufacturing sector improved from 57.5 to 58.3. It had been expected to fall, so was a reason for mild celebration. Thursday's services sector PMI is projected to be steady at 53.0 but the Halifax house price index the following day could bring negativity back into the equation. Buyers of the Australian dollar have little option but to hedge their risk, fixing a price for half the money they need with a forward purchase. For more information and expert guidance on the currency markets, go to the Moneycorp website where you can open a free, no obligation Trading Facility.
  5. THE GREAT RATE DEBATE CONTINUES.. [img2=right]http://www.britsabroad.com/images/exchange-rate.png[/img2]Everyone has a view about where UK interest rates should go and when. Aussie dollar saggy but not seriously so. Sterling struggled to add a cent over the seven days. It looked promising on Tuesday but gave back nearly all of its gains on Wednesday. Since then it has done nothing. All the action took place within a two and a half cent range. Sterling was not entirely driven by interest rate hopes and fears but it was that outlook that accounted for most of the action. Virtually every day brought some new revelation or rebuttal. Investors dutifully reacted to each one in turn, paying most attention to whatever happened or was said most recently. Britain's business secretary set the ball rolling when he sided with the doves. Vince Cable told news agency Bloomberg that domestically-fuelled inflation is not an issue; "It's virtually deflation." As for a decision by the Bank of England to raise interest rates, he said it was "potentially very difficult". It looked a lot less difficult the following day when consumer price index (CPI) inflation came in at 4.0% and retail price index (RPI) inflation - the one that really eats into people's buying power and savings - hit 5.1%. In his quarterly letter to the chancellor explaining what's gone wrong and what he intends to do about it the governor appeared to hint that the Bank Rate would be up to 1.25% or even higher by the end of the year. Sterling went up. It went down the next day when the governor explained that the Bank's projections of inflation have to be based on some interest rate or another. It might as well be the market's expectations as anyone else's. That did not mean rates were going up this year. They might; they might not. Sterling went down. The following day monetary policy committee (MPC) member Andrew Sentance, the committee's arch-hawk, gave a speech explaining why higher rates are needed now. Gilding the lily, he also threw in a comment that a modest appreciation of sterling "...would mitigate the impact of global inflationary pressures in the short term and help to steer inflation back to the target over the medium term." Yes, somebody at the Bank of England (admittedly a part-timer but an important one) was talking sterling higher. Friday's contribution came from shadow chancellor Ed Balls, who told the Financial times that a 0.5% Bank Rate is appropriate. As Mr Balls will be in no position to do anything about it for a while his remark left sterling unmoved. Beyond the rate debate, the only UK data of any consequence were those for January's retail sales. Increases of a monthly 1.9% and an annual 5.3% were appreciably stronger than investors had anticipated and they responded by buying sterling. Estate agents' website Rightmove announced early this morning that its house price index had gone up by 3.1% in the year to February. Investors giggled. Even Rightmove admitted it had received 1.3 million new listings last year while lenders made little more than half a million mortgage loans. Rightmove expects that imbalance to continue this year. If the Aussie owes last week's modest losses to anything it is to the growing nervousness about how the spate of revolutions in North Africa and the Middle East might push up the already lofty prices of food and energy, global inflation and, in turn global interest rates. China is feeling the pinch, raising interest rates and increasing the reserves that banks must set aside for the loans they make. Whilst higher commodity prices are in one way good for Australia's exports, they also have a negative impact on demand and act as a brake on the global growth that drives that demand. There was minimal input from the Australian economic data. Westpac's leading index improved from flat to a positive 0.8% in December. Motor vehicle sales were down by -1.9% in January and by -2.8% compared to a year earlier. There is little more to come this week apart from construction work done, the Conference Board's leading index and private capital spending in the fourth quarter. Sterling's two challenges are the MPC minutes on Wednesday (how many members voted for a rate increase; was it more than two?) and Friday's first revision to fourth quarter GDP (was it really that bad - or worse?). Sterling interest rates are going up. That's for sure. But when? And how quickly? The last week's data and comments have left investors no wiser than they were before. Sterling/Aussie still appears to be in a holding pattern. For the time being, buyers of the Australian dollar should continue to hedge their risk, fixing a price for half the money they need with a forward purchase. For more information and expert guidance on the currency markets, call Moneycorp today on +44 (0)20 7589 3000. Alternatively go to www.moneycorp.com where you can open a free, no obligation Trading Facility.
  6. Moneycorp's weekly look at the money markets with an eye on the British Pound and the Australian Dollar. [YOUTUBE]Q_4PYDyr8NI[/YOUTUBE]
  7. Guest

    Exchange Rate to Drop??

    Someone mentioned that we may be heading for a hung parliament and if this is the case the exchange rate is going to drop further:shocked: Is there any truth in this, can anyone help?? We have had an offer made on our house and we don't know if to bring our money over now, if it is going to drop even further then I think we should. Any thoughts?
  8. ARE STERLING INTEREST RATES GOING UP? · Some analysts think so; this week's inflation figures may provide a clue. · Australian employment change disappoints. Sterling continued the previous weeks advance until Friday, when it paused to take stock. It opened in London this morning three and a half cents better on the week. Sterling had a fairly easy ride through the week's few economic statistics. Having managed to dodge a fall in the Halifax house price index it went on to sidestep a -0.3% drop in the British Retail Consortium's retail sales figure, taking the BRC's word for it that it was only the hideous weather in December that spoiled the result. Another record monthly trade deficit was close enough to forecasts to avoid doing any damage. Industrial and manufacturing production figures were both higher in November, manufacturing by 0.6% and the broader industrial production (including mining and energy) by 0.4%. They, too, were in line with expectations. The figures that did make a difference - and a positive one - were Friday's producer price index (PPI) numbers. They were pretty punchy. Manufacturers' costs increased by 12.5% in the year to December while factory gate prices rose by 4.2%. Leaving aside the implication that gross profit margins are being horribly squeezed, the 4.2% rise in factory gate prices suggests that at least some of the increase must pass through to retail prices. Although the Bank of England made no change to monetary policy on Thursday and has said nothing to suggest that interest rates are going up any time soon, the PPI numbers prompted investors to wonder whether they might. Rightly or wrongly the market has begun to think a rate increase will come sooner than previously thought. Some analysts say May. Consumer price index (CPI) inflation data this week are expected to show an official inflation rate of 3.3%. The old retail price index (RPI), arguably a better measure of the real cost of living, could be up by 4.8% on the year. Add to that a belief among the general public that prices will rise by 3.9% this year and the pressure for a rate increase becomes even greater. It is all very well for the Bank to say the current high inflation rate is the result of temporary pressures - it may even be true - but if people and businesses believe it will rise even further the belief itself will push prices higher. An early interest rate increase could be used to nip that idea in the bud. With the European currencies pushing ahead, led by the euro itself, anything with "dollar" in its name fell to the rear. The Aussie was not the biggest casualty but it lagged behind its Canadian and New Zealand cousins, losing-2% against the pound and -3% against the euro. The Australian economic data could not really be blamed. Retail sales were up by 0.3% in November, partially reversing the previous month's -0.8% decline. November's $1.9 billion trade surplus was very close to forecast. Home loans for that month were up by 2.5% while investment lending was down by almost exactly the same proportion. Most important were the Australian employment data, particularly the figure for employment change in December. After unusually strong jobs growth of 54.6k in November the predicted 25k would have been anticlimactic on its own. The number announced on Thursday was even more of a disappointment at just 2.3k, as near to unchanged as makes no difference. The Aussie dollar had a mad half-hour, strengthening immediately ahead of the announcement and falling by a cent when the news came out, but the numbers had no lasting impact. There is no particular focus in Australia this week. New vehicle sales will probably be -3.1% down in the year to December and consumer confidence will probably be lower after the Ashes series. For sterling the obstacles will be CPI inflation, employment, public sector borrowing and retail sales, all of which are important numbers. It is probably fair to assume the inflation data will be helpful but the others are in the lap of the gods.
  9. In this week's update: Wild swings seen in the sterling Australian dollar currency pair This currency pair was driven higher in the early part of the week, as global concerns surrounding the Greek sovereign debt crisis persisted and had now, in fact, spread to other southern Mediterranean nations. The euro was sent markedly lower when news broke that the Spanish Central Bank had had to rescue one of the nation’s savings banks, CajaSur, prompting fears that many more Spanish savings institutions would suffer a similar fate. This led to investors dumping Australian dollars for the safety of the US dollar, while sterling managed to hit a high of just above A$1.77, before falling back down to A$1.70 as relative calm was restored to the markets by Thursday. The pound benefitted from economic data which continues to support the view that the UK recovery is gaining traction and that it is being led by manufacturing and industry, rather than consumer debt – meaning it should prove resilient and sustainable. Focus at the beginning of the week was on the details of the new Chancellor’s plans for £6.2bn of immediate spending cuts, in advance of the budget next month. The plan not only needed to be credible, it also could not overly hinder economic growth. In the event, the axe fell on quangos and wasteful areas of government, focussing on efficiencies rather than outright cuts (for now) to the general approval of the market. The main data of the week showed that Gross Domestic Product (GDP) rose 0.3% in Q1, compared to the initial measurement of 0.2%. This was the expected result; however, manufacturing unexpectedly surged 1.2% – the largest gain in activity recorded since the first quarter of 2006. As a result, some analysts have suggested that there may be a further upward revision when the final reading is announced, with another strong figure expected for Q2. However, fiscal tightening is likely to mean the second half of the year will not be as good. Not all data was positive, as retail sales suffered an unexpected hit in May after shoppers were turned off by poor weather and the biggest price rises in two years. The reading was the largest one-month drop in the index since January 2005. The Confederation of British Industry's quarterly survey, released at the same time, showed the greatest balance of firms reporting planned and actual price rises for two years. This added to inflation fears. Consumer confidence, perhaps unsurprisingly, also dipped as concerns over spending cuts and tax rises caused shoppers to tighten their purse strings. Elsewhere, mortgage approvals were slightly down on expectations, but not enough to hinder the pound. Global risk appetite did however get a boost when news that China’s foreign exchange regulator affirmed its commitment to investing in Europe, damping concern large investors may flee the eurozone’s common currency. China’s State Administration of Foreign Exchange, or SAFE, which manages China’s $2.4 trillion of foreign exchange reserves (the world’s largest), said in its statement that “the media report that SAFE is reviewing its euro holdings was groundless,” without specifying the media to which it was referring. Later in the day, the Kuwait Investment Authority made a similar statement further boosting the euro. This vote of confidence saw investors flood back to the high yielding Australian dollar, although their appetite was nowhere near as strong as it had been previously only a couple of months ago. Further signs that the Reserve Bank of Australia’s determined efforts to ensure inflationary pressures are contained – following their sequence of rate hikes since October 2009 – are now feeding through to the real economy. Although construction work did rise by 1.9% during the month of March, this was lower than market expectations. Many economists are now suggesting a more modest growth rate for the first quarter of 2010. Australian business investment reported an unexpected drop of 0.2% for the first three month of this year. Concerns remain that company spending may continue to slide in the months ahead, following the government’s proposal to impose a 40% tax on mining profits. This ‘super tax’ may see inward investment decline and job creation hindered. With so many differing factors driving the sterling Australian dollar rate, buyers of dollars should consider hedging their exposure. Whether for a one-off real estate purchase or ongoing living costs, they would be wise to fix a price for half the amount of currency they are going to need. Hedging does not guarantee buying Australian dollars at the best possible price; it guarantees not buying them at the worst. For more information and expert guidance on the currency markets, go to www.moneycorp.com where you can open a free, no obligation Trading Facility. Foreign Exchange since 1979
  10. [img2=right]http://www.pomsinoz.com/images/moneycorp468x300.jpg[/img2]John Kinghorn from the foreign exchange expert's moneycorp, is hosting a special UK election live chat session with forum members on Thursday 16th April (7:30pm until 9:30pm, UK time). The UK General Election takes place in May 2015 and with current opinion polls predicting a tight result, uncertainty beckons ahead of and after the election, which could in turn impact the sterling/Australian dollar exchange rate. Therefore, this summer's election result is an important factor to consider if you are transferring money to or from Australia. About John from moneycorp John Kinghorn is Head of UK Private Partnerships at moneycorp. With over 10 years’ experience in the migration industry, John regularly speaks at seminars on the subject and can also help you with other aspects of your move to Australia. When transferring money to or from Australia, moneycorp can typically offer you better exchange rates than your bank – often up to 4% better, saving you money. As an exclusive offer for forum members, all transfer fees are free when sending money overseas. Visit the Poms in Oz currency homepage for more information -http://moneytransfer.pomsinoz.com/ How to participate in the live chat session Head over to our sister site - www.pomsinoz.com If you have an account on Pomsinoz, login, then click on the 'chat' menu option at the top of the page. Clicking on chat will launch the chat software. There enter the 'Moneycorp' room. If you don't have an account of Pomsinoz, you can still participate by by following this link - UK election live chat session, then, once the chat software has loaded, tick the 'Guest' option at the top of the chat window, then choose a username and click 'Login' and enter the Moneycorp chat room. NB: If you have a device which doesn't use Flash eg: iPhone or iPad, you can join us in the chat via this link or by downloading the free 123Flashchat app from the Apps Store via this link and entering 921 as the chat ID.
  11. Weekly currency update from Moneycorp [moneycorp]10168283[/moneycorp]
  12. TRICKLE OF WEAK DATA WEIGHS ON STERLING Purchasing managers' indices and house prices falling. Investors embrace the Australian dollar as they desert the US dollar. A generally uncomfortable four-day week for sterling saw it lose four and a half Australian cents and left it facing further damage when London opened this morning. The pound was dogged by disappointing economic data throughout the week. None was outrageously bad but the trickle feed of mediocrity had a depressing effect on sterling. Perhaps the best figure was the four-point improvement in consumer confidence GfK's measure) that kicked off the week. It improved from -22 to -18. Still negative, granted, but heading in the right direction. Unfortunately the market was not impressed; it set more store by the dreary mortgage and personal lending numbers later on Tuesday. There was no chance that investors would be overjoyed by the pathetic 160 increase in the number of mortgages approved in July. Nor were they smitten by Nationwide's house price index which fell again August, this time by -0.9%. Wednesday's banana skin was the manufacturing sector purchasing managers' index (PMI), which measures (by calculation; it is not an opinion-driven survey) activity across a commercial sector. Including a downward revision to the previous figure the index for August was three points down on the month at 54.3. Against the equivalent numbers from Europe and the States it looked weak. There was more of the same on Thursday with a 52.1 reading for the construction sector PMI and on Friday when the services PMI came in at 51.3. Both had lost a couple of points on the month. If they go below 50.0 it will mean activity is shrinking, not just glowing more slowly. A heartening piece of news for Britain, if not for sterling itself, was the three-yearly survey of foreign exchange activity by the Bank for International Settlements (BIS). London has extended its mastery of global FX, handling 37% of all activity. It is more than double the 18% accounted for by the United States (New York and Chicago). No other country makes it into double figures. Paris and Frankfurt together do less business than Singapore. As well as an impressive 1.2% quarterly expansion of gross domestic product the Lucky Nation was able to reveal a 19% increase in company profits in the second quarter of the year. Inventories were down by -0.5%, possibly a sign of fading confidence but equally possibly an indication that orders are running ahead of production. More good news came with a 2.3% increase in dwelling approvals after three months of decline that saw them cut by a fifth. Retail sales, too, were ahead of forecast with 0.7% monthly growth in July; nearly 100% better growth than the market had been looking for. The trade balance for July was also better than forecast with a $6.5 billion surplus, miles better than the previous $3.2 billion deficit. In value terms exports rose by $21% while imports were up by less than 5%. The terms of trade helped, improving by 12.5%. Beyond the domestic Australian developments investors were also interested in pursuing Friday's US employment report and in a general perception that things might not be as bad as they seemed for the global economy. On the world stage the smaller-than-expected loss of US jobs in July, a net -54k people instead of the expected -76k over two months, led to investors dumping safe-haven yen, Swiss francs and US dollars and rushing back to take advantage of the higher yields available from the commodity- and growth-related currencies. A North American holiday today (Labor Day) and a relative shortage of interesting data leave investors with not much to provide guidance this week. UK industrial production should have risen in July and with a bit of luck the weak pound might at last be serving to narrow Britain's trade deficit. Thursday's meeting of the London Monetary Policy Committee (MPC) is highly unlikely to result in any change to interest rates. Neither is the Reserve Bank of Australia going to shift its Cash Rate, at least as far as most analysts are concerned. That does not mean investors will sit on their hands and do nothing. On Monday morning they seemed to be teed up to give sterling another whack. Buyers of the Australian dollar should use a forward transaction to fix a price for half the currency they expect to need and take advantage of any sterling spikes to improve their average. For more information and expert guidance on the currency markets, go to Moneycorp where you can open a free, no obligation Trading Facility.