Webinar: Central Bank Weekly: RBNZ Hits NZD; What's Next from ECB & Fed for EUR & USD?
Upcoming Webinars for Week of August 13 to August 18, 2017
Monday at 7:30 EDT/11:30 GMT: FX Week Ahead
Tuesday at 6:00 EDT/10:00 GMT: European Desk Round Table
Wednesday at 6:00 EDT/10:00 GMT: Mid-Week Trading Q&A
Thursday at 7:30 EDT/11:30 GMT: Central Bank Weekly
See the full DailyFX Webinar Calendar for all upcoming strategy sessions.
In this webinar I discuss the major central banks' monetary policies and their implications for FX markets as we move through the middle of August.
This week we've heard from the Reserve Bank of New Zealand, which issued a stark warning over recent New Zealand Dollar strength and how the strong Kiwi could hinder the central bank's ability to reach its inflation target. Despite the market reaction, the shift in tone from the RBNZ seemed likely, as outlined in the FX Week Ahead webinar (and accompanying article) on Monday.
The commentary from the RBNZ was similar to what we heard from the Reserve Bank of Australia in the week before, when complaints were raised about Australian Dollar strength. Since the August 1 RBA meeting, the Australian Dollar has lost ground against every major currency (but for the New Zealand Dollar).
Now that global risk appetite is starting to spill over thanks to rising geopolitical tensions between North Korea and the United States (the threat of nuclear war tends to raise a few eyebrows), the timing of the dovish tones employed by the RBA and RBNZ - as well as the Bank of England, which may have marked the top in the British Pound last week after their rate decision - has led to swift drop in pairs like AUD/JPY and NZD/JPY.
Other topics covered include:
- Why was the New Zealand Dollar's fall inevitable around the RBNZ rate decision this week?
- Why might the US Dollar be finally stabilizing, and what does the Fed have to do with it?
- How has the Euro's rally become self-defeating from the ECB's perspective?
--- Written by Christopher Vecchio, Senior Currency Strategist
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