HiFX Morning Update, May 15

HiFX Morning Update, May 15

The NZDUSD opens at 0.7495 (mid-rate) this morning.

The U.S data releases overnight were mixed. The Producer Price Index (PPI) came in under the market expectation of +0.1% at -0.4%, but the Unemployment claims were better than expected at 264k, ahead of the 272k consensus.

Initially the USD weakened against the kiwi setting an overnight high above 0.7550, before with retesting 0.7500 which is now the support / resistance pivot point.

The ECB’s President Mario Draghi spoke overnight about the effectiveness of recent monetary policy measures and the challenges ahead for the Euro zone. The ECB’s aim has been to maintain price stability over the medium term and he mentioned that with the Quantitative Easing being a new instrument for them to use, that different consequences can occur than traditional monetary policy. The ECB will continue to identify, weigh, and where necessary, mitigate those consequences.

The European Bank for Reconstruction and Development said the monetary policy easing of the European Central Bank has lifted the outlook for economies in central and south eastern Europe. However, prospects further to the east of the transition region have worsened due to the ECB's quantitative easing.

Global equity markets were up with the exception of the Nikkei: Dow +0.90%, Nikkei -0.98%, Shanghai +0.06%, FTSE +0.34%, DAX +1.84%, CAC +1.36%

Gold prices continue higher up $7.5 to $1221 an ounce, Oil (WTI) is slightly higher trading at $60.50 a barrel.

The current indicative mid-rates are:

NZDUSD 0.7495
NZDEUR 0.6570
NZDGBP 0.4750
NZDJPY 89.30
NZDAUD 0.9280
NZDCAD 0.8985

ends

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