HiFX Morning Update, July 13 2016

HiFX Morning Update, July 13 2016

The NZDUSD opens at 0.7305 (mid-rate) this morning.

The NZD along with other commodity-linked currencies has strengthened over the past 24hrs with global sentiment continuing to improve. Global equity markets are broadly higher with the S&P and the Dow reaching new all-time-highs amid optimism that US second-quarter earnings would beat expectations.

The Japanese Yen has again been the worst performing currency over the past 24hrs with investors front running further fiscal stimulus from the BOJ. Yesterday Former Federal Reserve Chairman Ben Bernanke met with Japan’s Prime Minister Shinzo Abe and rejected the notion that the Bank of Japan is short of ammunition to shore up Japan’s economic output, and recommended the BOJ coordinate its policy with fiscal measures to end over a decade of deflation.

Overnight Germany's consumer prices increased for the second straight month in June with the index climbing 0.3% y/y following May’s 0.1% rise.

The GBP received a boost after Bank of England Governor Mark Carney said that there would be no "credit crunch" like the one experienced in 2008 and 2009. In his address to lawmakers Carney reiterated that the bank has the tools at its disposal to meet responsibilities for both monetary and financial stability to cushion the impact of the Brexit vote.

Global equity markets are still rising - Dow +0.77%, S&P 500 +0.82%, FTSE -0.03%, DAX +1.33%, CAC +1.57%, Nikkei +2.46%, Shanghai +1.82%.

Gold prices continue to slide currently down 1.5% at $1,334 an ounce, WTI Crude Oil has rallied 4.2% over the past 24hrs currently trading at $46.64 a barrel.

ends

© Scoop Media