HiFX Morning Update, May 12

HiFX Morning Update, May 12

The NZDUSD opens at 0.7345 (mid-rate) this morning.

The NZD has lost ground against all its major competitors as speculation that the reserve bank will cut our OCR increases. The forward market is now pricing in 44bps cuts by March 2016.

The GBP has been the best performing currency at the start of the week with investors continuing to build a long sterling position following last week’s election result. Overnight the BOE announced that an unchanged bank rate of 0.5% and asset purchases of GBP 375 billion, in line with market expectations.

Global equity markets are mixed- Dow -0.35%, Nikkei+1.25%, Shanghai +3.04%,FTSE -0.24%, DAX -0.31%, CAC -1.23%.

Gold prices are down $4 at $1183 Oil (WTI) is slightly lower at $59.07 (-0.5%) a barrel.

The current indicative mid-rates are:

NZDUSD 0.7345
NZDEUR 0.6585
NZDGBP 0.4710
NZDJPY 88.25
NZDAUD 0.9300
NZDCAD 0.8890

ends

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