HiFX Morning Update - June 18

HiFX Morning Update - June 18

The NZDUSD opens at 0.6981 this morning.

The NZDUSD had been sold heavily overnight - briefly flirting with sub .6900 levels not seen since July 2010. However speculation that the US Federal Reserve would offer a clearer view of future interest rate hikes were dashed – as Fed Policy makers remain reluctant to raise rates now and continue to be ‘data dependant’. In short , there’s no rush.

The Fed at the same time lowered their US Inflation and GDP forecasts.

Meanwhile the Greek Central bank warned that Greece risks a painful and disorderly exit from the EURO and perhaps even the European Union, if a deal is not struck soon with it creditors. That said, the EURO has continued to rally, reaching weekly highs of 1.1352 against the USD overnight.

US equity markets are moderately higher while European equity markets were sharply lower. Asian equities were mixed with Shanghai rebounding strongly: Dow +0.19%, S&P 500 +0.19%, FTSE -0.44%, DAX -0.60%, CAC -1.02%, Nikkei -0.19%, Shanghai +1.62%, Hang Seng +.70%
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Gold price is up $6 trading at $1186.60 an ounce, Oil (WTI) is up at $59.597a barrel.

The current indicative mid-rates are:

NZDUSD 0.6981 0.%
NZDEUR 0.6160 -0.8%
NZDGBP 0.4415 -1.1%
NZDJPY 86.15 +0.2%
NZDAUD 0.9010 +0.2%
NZDCAD 0.8540 -0.7%

ends

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