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Market Update

EncoreFX’s daily market updates are written by our experienced and professional dealing team.

NZD Mixed, Pound Continues to Rally Despite Brexit Stalemate

Published January 18, 2019

The New Zealand Dollar begins the day at similar levels to yesterday after reports that U.S Treasury Secretary Mnuchin is discussing lifting some or all tariffs imposed on China. Mnuchin has suggested offering a tariff rollback during trade discussion scheduled for January 30th. The Kiwi had fallen by around 0.5% overnight on continued concerns over the global economy, but has bounced back in the past half hour on this encouraging report.
A lack of local data this week has seen the Kiwi rise and fall on the back of global risk sentiment. Next week sees NZ inflation numbers released on Wednesday, which is the first batch of top tier local data for the year.

U.S Government Remains in Partial Shutdown

The US congress passed a bill yesterday to remedy the partial government shutdown, with Senate Majority Leader Mitch McConnell stating the vote on a bill will not be accepted without President Trump’s support. The growing number of government contractors going unpaid is seen as large enough to impact growth this quarter.

Brexit…

The British Pound performed well once again making ground amidst speculation that Prime Minister Theresa May will request a delay to the Brexit deadline date of March 29th. May was able to overcome a vote of no-confidence yesterday, overall leaving the UK in a familiar scenario. Today May is negotiating with her opponents to find a position on exiting the European Union that would retain majority support in Parliament. The clock is ticking with only 10 weeks remaining until the exit date.