The Kiwi Dollar opens the day little changed from yesterday despite the US Dollar making good ground against most currencies as trade war developments took a positive turn. President Trump said a deal with China to pause the trade war between the world’s two largest economies was “very close”. Currency movements have been fairly contained but US stock prices have surged to a record high.
Trade Deal Getting Closer?
Markets have been buoyant overnight as President Trump sent the clearest signal yet that a trade deal could be imminent tweeting “getting very close to a big deal with China, they want it and so do we!”. The US Dollar has been well supported on the back of this tweet, after earlier running into selling pressure as PPI and Jobless claims both missed expectations earlier this morning.
No Move from ECB
The ECB kept rates on hold this morning in Christine Lagarde’s first meeting at the helm. This follows yesterday’s Fed decision to do the same, and polls are showing many analysts are projecting both central banks to hold rates in 2020 barring a material change in the economic outlook.
UK Heads To The Polls
The British Pound has been on the soft side with latest polls showing the UK election might be too close to call. A Conservative majority would see Brexit implemented in January 2020, followed by an 11-month transition period in which Britain would negotiate separate trade deals with the remaining EU nations. On the other hand, a Labour Party win would make things a lot less clear cut and could ultimately lead to a second referendum on Brexit. Voting closes at 11am this morning NZ time with result expected to start filtering though this afternoon.
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