EncoreFX’s daily market updates are written by our experienced and professional dealing team.
The Kiwi opens higher this morning against most majors as we see risk appetite returning to markets.
UK PM Theresa May re-iterates no deal is better than a bad deal
The Pound fell overnight on comments from UK Prime Minister Theresa May to reporters that a no-deal Brexit “wouldn’t be the end of the world”, adding that no deal would be better than a bad deal for the UK. The comments appeared to undermine Finance Minister Philip Hammond’s warnings of the damage it could cause the economy from a “no-deal” Brexit. The GBP was down near a one-year low against the Euro.
US consumer confidence surges to 18-year high
The US consumer confidence index surged to 133.4 in August vs forecasts of 126.7 and hit the highest level since October 2000. The USD was little changed on the announcement as the dollar remains under pressure from Federal Reserve Chairman Powell’s dovish comments last week at the Jackson Hole symposium, suggesting a slower pace of US interest rate hikes.
No big data announcements out today, with markets, looking ahead to the US gross domestic product data release this evening for further direction on the USD.
Local data to watch will be tomorrow’s ANZ Business Confidence results.
© Copyright - EncoreFX, 2018.The information in this post is provided for general information purposes only and has been prepared without taking into account any person’s objectives, financial situation or needs and, accordingly, it does not constitute personalised financial advice under the Financial Advisers Act 2008, nor does it constitute advice of a legal, tax, accounting or other nature to any person. Before acquiring any financial services or products from EncoreFX, you should consider the appropriateness of the information having regard to your own objectives, financial situation or needs. We recommend that investors seek advice from their usual adviser before taking any action. EncoreFX (NZ) Ltd is a registered Financial Services Provider (FSP 461386), and is a licensed derivatives issuer under the Financial Markets Conduct Act 2013. EncoreFX (NZ) Ltd has lodged a Product Disclosure Statement (PDS) for each of our derivatives with the Registrar on 21-Dec-2016. A copy of each PDS is available from us or from the Registrar at www.business.govt.nz/disclose.