EncoreFX’s daily market updates are written by our experienced and professional dealing team.
The Kiwi Dollar has bounced back overnight recovering from losses made over the past two days. The Global Dairy Trade auction saw prices rise 0.9% in US Dollars, the sixth consecutive rise in a row. The result was below market expectations, and with the recent rise in the local currency, prices were actually 0.4% lower in New Zealand Dollars.
Elsewhere, the US Dollar was generally weaker, while the GBP was the best performing G10 currency overnight. Not much in the way of major data today, although there will be some interest in this afternoon’s AUD Wage Price Index, given the RBA’s strong focus on the labour market. Tomorrow morning sees the much anticipated US FOMC meeting minutes from January.
Trade Talks to Resume
The new round of negotiations between the US and China will resume today in Washington. President Trump has said that there is a possibility he would extend a March 2 deadline in trade talks with China if the two countries are closing in on a deal. Reports overnight have suggested that the US is requesting China keep the value of the Yuan stable as part of the trade negotiations.
GBP Rallies on Employment Data
The GBP was the best performer of major currencies once again after a better than expected employment report. UK employment rose by 167,000 to a record high of 32.6m in Q4. Market expectations had been for an increase of 152,000. The rise in the Pound was limited as Brexit concerns continue to cast a shadow. PM Theresa May will return to Brussels this week to continue talks on her Brexit deal and will meet the President of the European Commission, Jean-Claude Juncker. The EU reiterated that there can be no unilateral exit clause on Irish-border backstop, as both sides continued to seek a solution that is acceptable to the UK Parliament.
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