The euro slumped on Thursday following the European Central Bank’s (ECB) latest interest rate decision.
After some choppy trade in the first half of the week the Australian dollar found its feet in the latter half of the session as Australia posted a larger-than-expected trade surplus and some robust retail sales figures in June.
Meanwhile weakening the New Zealand dollar last week was an unexpected rise in domestic unemployment in the second quarter.
This left the ‘kiwi’ particularly exposed at the end of the week amidst a rise in global trade tensions as reports suggested the US was planning to increase its proposed tariff rates on $200bn of Chinese exports.
Looking ahead the ‘aussie’ may struggle to repeat its strong performance this week as the Reserve Bank of Australia’s (RBA) latest policy meeting is expected to see it continue to urge caution in the face of trade uncertainty and weak wage growth.
Meanwhile the Reserve Bank of New Zealand’s (RBNZ) latest policy meeting is likely to result in an equally gloomy outlook, with the NZD exchange rate poised to tumble if the bank continues to suggest that a rate cut remains on the table.
Joining the corporate trading desk in 2007, Phil now over sees all of Currencies Direct’s corporate dealing activity. Having gained experience working with hundreds of businesses to optimise international payments processes and execute comprehensive risk management strategies, Phil currently works with a portfolio of corporate clients whilst managing Currencies Direct’s overall market exposure
Phil has FCA approval and has completed the Certificate in International Treasury Management (CertiTM)