HiFX Morning Update. October 12 2016

HiFX Morning Update. October 12 2016

NZDUSD 0.7058 -1.0%
NZDEUR 0.6386 -0.3%
NZDGBP 0.5819 0.8%
NZDJPY 72.95 -1.4%
NZDAUD 0.9356 -0.2%
NZDCAD 0.935 -0.5%

The NZDUSD opens at 0.7058 (mid-rate) this morning.

The USD and JPY spiked overnight as Global sentiment deteriorated following a leaked UK Treasury report showing the British government could lose as much as GBP 66bil per year in tax revenues and have its GDP slashed as a result of a “hard Brexit”.

The report which was published by the Times showed leaving the Euro-zone without striking a deal and switching to World Trade Organisation regulations could lower GDP to between 5.4% and 9.5% after 15yrs.

The NZD was already on the back foot after RBNZ assistant Gov John McDermott confirmed in a behind closed doors speech on inflation, that further policy easing will be required and that monetary policy will continue to be accommodative.

Markets are expected to be fairly quiet ahead of tomorrow morning's FOMC meeting minutes.

Global equity markets are mixed - Dow -1.05%, S&P 500 -1.21%, FTSE -0.38%, DAX -0.44%, CAC -0.44%, Nikkei +0.98%, Shanghai +0.56%.

Gold prices are a little softer down $5 from yesterday currently trading at $1,254 an ounce, WTI Crude Oil is down 1.2% overnight but still holding above $50 currently trading at $50.70 a barrel

ends

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