HiFX Morning Update, May 25

HiFX Morning Update, May 25

The NZDUSD opens at 0.7320 (mid-rate) this morning.

The USD closed out the week sharply higher against all its major competitors, after the U.S Core CPI m/m came in ahead of economists estimates 0.3% vs exp 0.2%, and comments from Fed Chair Yellen in a speech to the Chamber of Commerce.

The Fed now believe that the labor market is "approaching full strength," and unemployment should fall to near 5 percent by the end of the year. Yellen went on to state, "delaying action to tighten monetary policy until employment and inflation are already back to our objectives would risk overheating the economy,"

Global equity markets closed out the week mixed - Dow -0.29%, Nikkei+0.30%, Shanghai +2.83%,FTSE +0.26%, DAX -0.42%, CAC -0.07%

Gold prices closed out the week a shade lower at $1205 an ounce, Oil (WTI) closed out the week down 1.65% at 59.72 a barrel.

The current indicative mid-rates are:

NZDUSD 0.7320
NZDEUR 0.6650
NZDGBP 0.4725
NZDJPY 88.90
NZDAUD 0.9345
NZDCAD 0.8985

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