I just read something this morning that may be over hyped but may have legs.
Talk of a Chinese property bubble and that house prices are being hit badly. Now if it’s true what they are saying then this will have a knock on effect here and obviously if commodities suffer, Australia suffers. I think if they are right we could see interest rates start to drop here and then that could help the pound. Certainly with building approvals down 7.8% in Australia when they were expecting an increase of 0.4% things are slowing down here.
Allot of good news has been coming from the UK this week. Manufacturing PMI up Construction PMI up and Halifax House Price Index up 2.2% (They expected -0.3%)
The Exchange rate has moved to $1.54 which is breaking out of that long term trend down but its not enough yet to say we have a break out. Hopefully the rally will continue.
I will keep this thread updated. UK bank rate decision today which has a major effect on exchange rates. They don’t expect a change but if it did change (Upwards) it could have a major boost to the pound.
(As always I have to say this should not be taken as financial advice just one member making an observation)