Trump Loosens Financial Sector Rules, USD/AUD Climbs

03 February 2017 by News Desk   |   SHARE  

The pound slipped against other majors this week after the Bank of England (BoE) intimated that an increase in interest rates in coming months was highly unlikely. Against high-yielding currencies like the Australian and New Zealand dollars the pound took a particular beating and reversed some of its gains from earlier in the week say industry experts FC Exchange.

Furthermore, the BoE announced that Brexit damage to the economy had merely been deferred, rather than avoided. However, the central bank made sharp upward revisions to it’s growth forecasts and suggested the UK will register 2.0% growth in 2017.

Meanwhile, Australia’s trade balance rose to a record AU$3.5bn surplus in December which helped to buoy the Aussie dollar. The rise was accredited to a commodity price surge for items such as coal and iron ore. December saw Australia export the largest value of coal since November 2008 and the biggest values of iron ore since March 2014.

Meanwhile in the US, President Trump is expected to begin dismantling rules in the financial sector designed to protect consumers against a repeat of the 2008 Global Financial Crisis (GFC). The orders are aggressive steps in loosening financial service regulations and could see banks becoming more reckless in the future. The US dollar has been trending higher against other currency majors.

Disclaimer: This economic update is provided by FC Exchange a Global Reach Group Company, industry leaders in foreign exchange. Authorised affiliates are permitted to reuse content.

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