The NZD plummeted yesterday following the RBNZ unexpectedly announcing the next move is more likely a rate cut and fell to a 7-week low against the USD.
The RBNZ now join other key central bank doves such as the Fed, ECB, BOJ and the RBA as signs of a slowing global economy grow. Some economists are now forecasting the next rate cut to be as soon as May. Focus will now be on data with inflation and employment reports released in April.
Britain’s PM Theresa May’s Offers to Quit If Her Brexit Deal Passes
The Pound is the best performing currency overnight as several MP’s have said they will support May’s deal, now that she has said she would quit if her EU divorce deal passes on the third attempt and in a last-minute attempt to win over rebels within her party. The government are due to bring back May’s deal to Parliament on Friday, however the speaker still needs to be satisfied that the text has changed substantially since it was last defeated twice already. British Lawmakers will be voting on a series of options within the next hour.
ECB Can Delay Rate Hike Again
ECB President Mario Draghi spoke at an event in Frankfurt this morning and emphasized a softening of negative rates if they are found to harm overall euro monetary policy and could delay an interest hike until next year. Draghi continued to reinforce the need for an accommodative stance, stating that growth in the euro area will eventually recover
Local Data Coming Up:
• ANZ Business Confidence figures will be released at 1pm and will be closely watched after Governor Orr highlighted weak business confidence as an issue yesterday.
• RBNZ Governor Orr’s speech on Monetary Policy on Friday morning at 9am
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