Everybody knew that the RBA was set out to cut interest rates. But the RBA surprised the market with a much bigger than expected cut of 50 basis points. $GBPAUD rallied hard after the announcements and remains over 100 pips above its pre-RBA levels. The ECB also delivers an announcement on interest rates this week. The ECB is also expected to be dovish as the central bank shifts its focus off the banks and on to their economies. The $EURGBP remains below 0.82. Can sterling continue its rally on dovish sentiment from other central banks?
- UK PMI Falls, Export Orders Tank Thanks To Bad Sales In Europe, Asia, And The US (Busines Insider)
- Manufacturing still growing, CBI says (The Guardian)
- It Is Official – The RBA Is Working The Australian Dollar Lower (Seeking Alpha)
- Downturn In Australia According To US Corporate Chiefs (Forex Live)
- ECB Will Eventually Opt For A Rate Cut Over LTRO (eFX News)
- Notes from the DoubleLine Lunch with Jeffrey Gundlach, Spring 2012 (The Reformed Broker)
- EURGBP Update (50’s Blog)
- GBPNZD Update (50’s Blog)