EncoreFX’s daily market updates are written by our experienced and professional dealing team.
A quiet start to the week with the NZD trading a narrow range and opening slightly up from yesterday. The market appears to be awaiting Thursdays big data releases which includes NZ GDP, Australian Unemployment, and the US Fed rate decision. On the local front today we have consumer confidence numbers released this morning followed by the latest GDT Dairy Auction overnight, where another gain in prices is expected.
All Eyes on the Fed
Investors largely remain on the side lines awaiting Thursday mornings interest rate decision. Expectations are for no change, but the market is pricing in a dovish FOMC statement, with a downward revision to their rate hike projections.
GBP Loses Ground
The Pound was weaker as British Prime Minister Theresa May weighed up her chances of trying to push her Brexit deal through parliament at the third attempt after two previous defeats. May has indicated that if the Commons can agree to a deal before the European Council, Britain would seek to delay its previous departure date from the European Union to allow legislation to be passed. However, UK Speaker of the House John Becrow warned May that she will not be able to put her Brexit deal for a third time to another parliamentary vote unless there are substantial changes to it.
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