EncoreFX’s daily market updates are written by our experienced and professional dealing team.
The British Pound was the top performing currency overnight as hopes of a delayed Brexit grow. The NZDGBP opens at .5194 this morning from .5255 yesterday’s close.
Pound Positive on Brexit Delay Hopes
British Prime Minister Theresa May announced she could seek a delay to the March 29 Brexit date if parliament refuse to back her Brexit deal. There will be a vote on the withdrawal agreement on 12th March which will include whether to leave without a deal in place. If that fails there will be a vote on March 14 on extending the 29 March deadline for leaving the EU. The pound surged higher hitting a 21-month high against the Euro as chances of Britain crashing out of the EU with no deal fade.
Second Summit for President Trump & Kim Jong Un Held Today in Vietnam
President Donald Trump has landed in Vietnam for an organized summit with North Korean leader Kim Jong Un. Talks between the two leaders will take place on Wednesday and Thursday, with pressure on both for significant steps on denuclearization. Trump said it would be “a very tremendous summit” and stressed the benefits to North Korea if it gave up its nuclear weapons.
Fed Powell Says “No Rush” to Hike Rates
Federal Reserve Chair Jerome Powell has said to the Senate Banking Committee that they are in “no rush to make a judgement” on further interest rate changes as the economy is likely slowing. Powell also stated “the baseline outlook is a good one, but slower growth overseas is a drag on the US economy that we may feel more of, in the coming months”. Comments support the recent shift in Fed policy last month, indicating a pause in interest rate hikes. The NZDUSD now tests the .69 levels.
NZ Trade balance data is due at 10.45am this morning and expected to show a 300million trade deficit
© 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.