The Kiwi Dollar opens slightly lower ahead of tomorrow morning’s FOMC rate decision, while the U.S Dollar was generally firmer as data released overnight was better than expected. A big 24 hours of announcements ahead including NZ Business Confidence, Chinese PMI, and Australian Inflation this afternoon, followed by Euro Zone and Canadian GDP tonight, and then the big one, the FOMC rate decision at 6am tomorrow morning.
Positive U.S Data
Economic data released overnight was better than expected with consumer confidence spiking to 135.7 vs forecasts of 125.0. The USD found support on the back of these numbers despite more tweets from President Trump directed at China, while trade negotiations commence in Shanghai. Trump’s tweets included a warning to China not to wait for the 2020 U.S election to make a trade deal. He also said that Chinese negotiators “just don’t come through” on agreements. Markets will be looking for any news from the negotiations ahead of tomorrow’s FOMC decision.
Pound Fall Continues
The Pound was again the main mover of the major currencies falling to a 28 month low yesterday as markets further priced in a hard Brexit. PM Boris Johnson continued to reaffirm the message of – Brexit “no matter what”.
Bank Of Japan Keep Rates Steady
There was little impact from yesterday’s BoJ meeting, with the central bank keeping rates steady as expected. The bank added that they were committed to keeping rates at these low levels “for an extended period of time at least through to around Spring 2020”.
© 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.