HiFX Morning Update, September 8 2016

HiFX Morning Update, September 8 2016

NZDUSD 0.7151 0.6%
NZDEUR 0.6647 0.2%
NZDGBP 0.5669 1.1%
NZDJPY 81.41 0.5%
NZDAUD 0.9563 0.2%
NZDCAD 0.9465 0.3%

The NZDUSD opens at 0.7151(mid-rate) this morning.

Improving global-risk-sentiment on the expectation that European Central Bank President Mario Draghi is about to announce an extension of asset purchases by the central bank has seen global equity markets and risk traded currencies like the NZD push higher. Overnight tonight the ECB are widely expected to announce an extension of asset purchases (currently 80 billion Euros per month) by a further six months while leaving interest rates unchanged for the sixth consecutive month.

This morning RBNZ Governor Wheeler’s speech entitled “Some thoughts on New Zealand’s economic expansion”, will be closely monitored by investors ahead of the government’s latest economic and fiscal update which is due to be released early this afternoon.

UK industrial output unexpectedly declined in October falling 1.3% following a 0.4% drop in September. Economists had forecast an increase of 0.2%, contributing to the fall was a pull back in oil production due to oil field maintenance, and a weakness in the pharmaceutical sector.

Overnight tonight European Central Bank President Mario Draghi is widely expected to announce an extension of asset purchases by the central bank by a further six months while leaving interest rates unchanged for the sixth consecutive month.

Global equity markets are rallying - Dow +0.45%, S&P 500 +0.30%, FTSE +1.81%, DAX +1.96%, CAC +1.36%, Nikkei +0.74%, Shanghai +0.71%.

Gold prices have edged higher currently up 0.6% at $1,175 an ounce WTI Crude Oil has slid further currently down 1.3% at $50.17 a barrel.

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