The Kiwi opens relatively flat today with key gains made on the Yen as we see the NZDJPY return to the 76 levels (wholesale rates).
German economic outlook hits a six-year low
German investor confidence fell to a 6-year low on the survey from the Centre for European Economic Research (ZEW) as trade war fears escalate. The ZEW Indicator of Economic Sentiment plummeted to -24.7 in July, its lowest level since August 2012. Economists had expected the index to edge down to -18.0 from June’s reading of -16.1.
China inflation ticks higher
China’s annual consumer inflation rate for June (YoY) came in at 1.9% compared with 1.8% in May, which was in line with expectations. The producer price index, a gauge of industrial profitability hit a 6-month high rising to 4.7% in June from 4.1% in May driven by rising oil prices.
Overnight we have the Canadian rate decision with expectations of a rate hike to 1.50% from 1.25%.
US inflation numbers will be the key event this week and will be released on Thursday night.
© 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.