HiFX Morning Update, November 4 2016

HiFX Morning Update, November 4 2016

NZDUSD 0.7328 0.4%
NZDEUR 0.6594 0.3%
NZDGBP 0.5880 -0.9%
NZDJPY 75.46 0.1%
NZDAUD 0.9541 0.2%
NZDCAD 0.9810 0.4%

The NZDUSD opens at 0.7328 (mid-rate) this morning.

The euro area (EA19) seasonally-adjusted unemployment rate was 10.0% in September 2016, stable compared to August 2016 and down from 10.6% in September 2015. This is the lowest rate recorded in the euro area since June 2011.

The Bank of England said it’s no longer expecting to cut interest rates again this year and indicated that concern about accelerating inflation may even warrant tightening at some point. Having lowered interest rates in August in response to the Brexit vote, the committee said its previous guidance on the likelihood of another cut had “expired.” The vote was unanimous 0-0-9 to keep rates on hold at 0.25%

Filings for U.S. unemployment benefits unexpectedly rose to the highest level in almost three months, extending increases from a four-decade low. Jobless claims increased by 7,000 to 265,000 in the week ended Oct. 29

The US services sector marches on. Both the Markit services purchasing managers index and ISM non-manufacturing index came in solidly in growth territory, albeit with mixed results against expectations. The ISM's non-manufacturing also came in at 54.8 , below expectations of 56.0 from economists, and well below last month's 57.1 reading. The Markit services purchasing managers index (PMI) came in at 54.8 right on the expected reading.

Nonfarm business sector labour productivity increased at a 3.1% annual rate during Q3 of 2016, as output increased 3.4% and hours worked increased 0.3%. (All quarterly percent changes in this release are seasonally adjusted annual rates.) The quarterly increase in nonfarm business sector labour productivity was the first increase after three consecutive declines in the measure. From the Q3 of 2015 to the Q3 of 2016, productivity was unchanged.

Tonight we have a myriad of U.S. data – Average Hourly Earnings, Non-Farm Employment Change, Unemployment rate, Trade Balance and FOMC Member Fischer SpeaksFOMC Member Fischer Speaks.

Global equity markets are mainly lower- Dow +0.28%, S&P 500 -0.26%, FTSE -2.35%, DAX -0.43%, CAC -0.07%, Nikkei -1.76%, Shanghai +0.84%.

Gold prices are back at the $1,300 an ounce, down 0.5% WTI Crude Oil is down 1.6% continuing the run lower, currently trading at $44.48 a barrel.

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