News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bearish
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
More View more
Real Time News
  • Fed Chair Powell: -Emergency lending facilities were very helpful to economy -Haven't talked with US Treasury about emergency tools
  • Federal Reserve holds its policy interest rate and pace of asset purchases steady as expected. Get your $XAUUSD market update from @RichardSnowFX here:https://t.co/8CIIMYDUtr https://t.co/0U48GH20aM
  • Fed Chair Powell: -World has been struggling with disinflationary forces for a while -US inflation dynamics won't change much over near term -More concerned about recovery than pickup in inflation -Inflation resembling past decades seems unlikely
  • Fed Chair Powell: -Talk of tapering asset purchases is premature -Just too early to be talking about dates on tapering bond buying plans -Tapering would be gradual when we do it -Whole focus on exit is premature $SPX $NDX $DJI $USD $DXY $XAUUSD $TNX
  • Fed Chair Powell: -Pandemic, new virus strains still provide considerable downside risks -Will take quite a while to get to herd immunity -Vaccine rollout likely to be a struggle -Nothing more important to economy now than vaccinations
  • Fed Chair Powell: -Coming months' rise in inflation will be transient -We will be patient and not react when we see modest bumps in inflation -Very unlikely that we'll see troubling inflation -Not going to adopt a formula on inflation
  • Fed Chair Powell: -Financial vulnerabilities are 'moderate' right now overall -Asset prices have recently been driven by vaccines, fiscal steps -Link between interest rates and asset prices not so strong
  • Fed Chair Powell: -Fiscal response to economic downturn has been strong and sustained -We are a long way away from 'returning to normal' with about 9 million Americans still unemployed -The real unemployment rate is closer to 10% -Very appropriate to be highly accommodative
  • Fed Chair Powell: -Declines to comment when asked about recent $GME stock price activity, notes financial conditions are monitored very broadly -Carefully examining aspects of non-bank sector #Stocks #StockMarket #FOMC
  • We live in remarkable times.. https://t.co/PV9XZd4nXW
New Zealand Dollar May Rise as RBNZ Opts to Keep Rates on Hold

New Zealand Dollar May Rise as RBNZ Opts to Keep Rates on Hold

David de Ferranti, Currency Analyst

THE TAKEAWAY: The New Zealand Dollar may rise as the RBNZ opts to keep interest rates on hold despite a string of weaker economic data as inflation expectations hold on-target.

The RBNZ is widely expected to keep rates on hold at tomorrow’s policy meeting, with swaps markets pricing in only a 15% chance of a 25 basis point cut. Forex traders will be looking at the commentary from Reserve Bank Governor Wheeler as to whether there may be some scope for easing in 2013. A surprise cut or particularly dovish comments are likely to be negative for the New Zealand Dollar. However, with inflation expectations near the midpoint of the Bank’s 1-3 percent target range, we are unlikely to see hints of monetary easing in the near term. On balance, this is likely to be supportive for the Kiwi.

NZD/USD rallied following the central bank’s October decision to keep rates on hold at 2.5%. While the policy statement appeared to carry no rhetoric overtly supporting the case for added stimulus in the immediate term, a string of worse-than-expected economic data since then has raised the possibility the central bank may be compelled to act. Notably, unemployment hit the highest level in over a decade at 7.3% for the June quarter.

However, the Bank’s focus on medium-term inflation trends (over a period of about 2-3 years forward) means they are unlikely to be driven to action as long as price-growth expectations remain reasonably anchored. The latest reading from the RBNZ’s own two-year inflation outlook gauge printed at 2.3 percent, pointing to a lack of urgency on monetary stimulus.

AUDNZD – Daily Chart

Prices are consolidating above rising channel support set from October’s swing low, now at 1.2668. A close below that is needed for confirmation of a downward reversal. The first major layer of near-term resistance is at 1.2770, marked by the 23.6% Fibonacci expansion.

New_Zealand_Dollar_May_Rise_as_RBNZ_Opts_to_Keep_Rates_on_Hold_body_Picture_5.png, New Zealand Dollar May Rise as RBNZ Opts to Keep Rates on Hold

Created using FXCM Marketscope - Prepared by David de Ferranti

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES