THE TIPSTER
STERLING fell to five month lows against the dollar yesterday, as fresh concerns over the European debt crisis saw investors flock to traditional safe-haven currencies, such as the greenback and Swiss franc. Spreadex offers $1.5921-$1.5924 sterling-dollar.
Is the par(i)ty coming to an end for the Aussie dollar? After a meteoric rise fuelled largely by massive commodity exports to China and exaggerated by the healthy yield offered on cash, the prospect of slowing demand for metals and talk of a rate cut by the Reserve Bank of Australia is now weighing. Also despite the boom years, Canberra is still sporting a $50bn deficit, leaving the country exposed in the longer term. IG Index offers a spread on Australian dollar-dollar of $1.0458-$1.0459.
US Independence day has been set as the deadline for a deal between the US House of Representatives and Senate. A deal at this stage would induce a strong dollar relief rally, though ECB policy normalisation is ahead of the Fed’s, so any rally could be short-lived. On dollar-Swiss franc Alpari offers a spread of SFr0.8333-SFr0.8334.