EncoreFX’s daily market updates are written by our experienced and professional dealing team.
The Kiwi Dollar begins the day lower, giving back gains made over the past couple of days. The main driver for the fall in the NZD has been a stronger US Dollar, which rallied on the back of positive trade talks between the US and EU.
The USD is stronger over the past 24 hours, reversing the decline from the previous day. Trade negotiations in Washington produced positive outcomes with President Trump backing off on threats to impose tariffs on cars imported to the US, while European Commission President Juncker said the EU would import more US soybeans. The easing of trade tensions has been welcomed by markets, with the greenback making gains across the board and stock markets moving higher.
Positive trade talks between the US and EU was not enough to boost the Euro, with the currency losing ground overnight as the European Central Bank indicated interest rates would be on hold for at least the next 12 months. The ECB remains on track to end its stimulus program for the eurozone, despite an uncertain global trade outlook and signs of slowing growth within the region. It was confirmed overnight that bond purchases would be cut from €30 bln to €15 bln per month from October to December, and then the QE scheme is due to end.
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