The market is feeling the hangover today

Posted Friday, August 5, 2016 by
Skerdian Meta • 1 min read

The forex market is feeling pretty numb this morning. It looks like everyone is feeling the hangover from the BOE (Bank of England) decision to cut the interest rates and to increase their monthly QE purchase. We´ll cover this topic more in detail in the next market update though. Only the Australian Dollar is showing some signs of life. The RBA (Royal Bank of Australia) released their quarterly statement early this morning and although it wasn´t particularly hawkish. 

AUD/USD is about 40 pips higher this morning

But, it wasn´t that dovish either. The forex market was expecting a much more dovish statement, so it has taken this as positive for the AUD. The AUD has gained about 40-50 pips against most forex majors as a result and it has dragged the Kiwi with it.  The Iron ore futures have gone up in China which is another reason for the two commodity Dollars on the Pacific to feel brighter, since they are closely connected to the Chinese raw material market.  

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