By Dan Bell
The NZDUSD opens at 0.6617 (mid-rate) this morning.
All eyes were on Europe on Friday with the EUR and European equity markets all selling off after the Italian coalition government proposed a 2019 deficit of 2.4% of gross domestic product (GDP), triple the previous administration’s target.
The new government which came to power in June, is due to present its 3-year growth forecasts to the European Commission in mid-October with the Commission looking for a sharp reduction in the debt-to-GDP ratio which is largest among the big European economies at about 131%.
The DAX closed the day down 1.52% on the news with the CAC down 0.85% from where it opened. The EUR was down circa 0.5% against its main rivals.
The University of Michigan consumer sentiment report for the month of September downwardly revised to 100.1 from the preliminary reading of 100.8. Economists had forecast the index to remain unchanged.
The week ahead is very light on domestic data with tomorrow’s business confidence and the latest GDT auction in the early hours of Wednesday morning the only releases of note.
European equity markets fell sharply on Friday, – Dow +0.07%, S&P 500 -0.02%, FTSE -0.47%, DAX -1.52%, CAC -0.85%, Nikkei +1.36%, Shanghai +1.06%.
Gold prices edged higher on Friday up 0.3% closing out the quarter at $1,191 an ounce. WTI Crude Oil prices continued to push higher on Friday, closing out the quarter at $73.06 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 »