By Dan Bell
The NZD opens at 0.6865.
The NZD has consolidated overnight, trading sideways against most.
The Pound had a big move leading into Teresa Mays leadership challenge yesterday morning. May survived the vote, though this was widely rumored, so there was not actually too much movement on the result. In some ways having this behind them, removes one layer of uncertainty for the UK, and the Pound is stronger as a result.
In developing news, The French President Emmanuel Macron could also be facing his own no confidence vote, if left-wing lawmaker’s motion that has been tabled gets passed. Very early days, but definitely something to watch out for.
US Retail Sales out tonight, but the market is really waiting on next Thursdays FOMC statement and Federal Funds rate. Recently Interest rate decisions have been very anticlimactic as they are so widely foreshadowed and the market has already priced them in. Thursday’s hike however, is only given a 80% chance of happening, so is going to generate some volatility regardless. As ever, any hints on future hikes will also be closely scrutinized.
Global equity markets sharply higher, Dow +0.07%, S&P 500 -0.33%, FTSE -0.04%, DAX -0.04%, CAC -0.26%, Nikkei +0.99%, Shanghai +1.23%.
Gold prices are slightly higher trading at $1,248 an ounce. WTI Crude Oil prices are off on this time yesterday, down -0.7% trading at $51.87 a barrel
Current indicative rates:
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Dan Bell is the senior currency strategist at xe money transfer in Auckland. You can contact him here »