EncoreFX’s daily market updates are written by our experienced and professional dealing team.
The NZD opens higher as optimism returns to markets with the US and China reviving trade talks.
Trade Talks Resume
US Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu-He resumed trade talks ahead of the G20 summit being held in Argentina at the end of the month. US President Trump and China President Xi Jingping plan to meet on the sidelines of the G20 summit. Renewed optimism on the US-China trade talks provided a lift for the NZD as risk appetite returns. Caution remains as the devil is in the detail.
GBP Surges as Brexit Deal Text Agreed
The pound gets a boost as UK and EU negotiators agree on the text for a Brexit divorce deal including an agreement on the Irish border. Prime Minister Theresa May will now present the draft agreement to her ministers and has scheduled an emergency meeting with the cabinet at 2pm tomorrow GMT. May will need to secure the UK cabinets backing on the divorce deal, failing this, sterling rally could be short-lived.
Oil Slumps To 1-year Low
Crude oil tumbles to an 11th consecutive session decline after President Trump calls for lower prices and said OPEC should not cut supply. US crude prices fell over 7% overnight, the largest one-day decline for the contract in 3 years.
© 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.