HiFX Morning Update, January 30 2018

HiFX Morning Update, January 30 2018

The NZDUSD opens lower, compared with Friday, at 0.7316 this morning.

The USD gained across the board as US bond yields pushed higher ahead of Thursday’s US Fed interest rate meeting and Friday’s US non-farm payrolls employment figures. The NZDUSD consequently fell from recent highs.

The Fed meeting will be Jerome Powell’s first as Chair, having taken the mantle from Janet Yellen. The market is focused on whether we will see a continuation of Yellen’s slow and steady rate hikes – interest rate are anticipated to be increased 3 times during 2018, beginning in March, although some analysts are picking the Fed to raise 4 times.

The GBP weakened on fresh worries over whether Prime Minister Theresa May will be able to execute her Brexit plans.

NZ trade balance will be released at 10:45am

Global equity markets were mixed on the day – Dow -0.3%, S&P500 -0.3%, FTSE +0.1%, DAX -0.5%, CAC -0.1%, Nikkei -0.0%, Shanghai -1.0%.

Gold prices fell 0.9% to USD$1,345 an ounce. Oil prices (WTI) dropped 0.9% to USD$65.53 per barrel.

The NZDUSD opens lower, compared with Friday, at 0.7316 this morning.

The USD gained across the board as US bond yields pushed higher ahead of Thursday’s US Fed interest rate meeting and Friday’s US non-farm payrolls employment figures. The NZDUSD consequently fell from recent highs.

The Fed meeting will be Jerome Powell’s first as Chair, having taken the mantle from Janet Yellen. The market is focused on whether we will see a continuation of Yellen’s slow and steady rate hikes – interest rate are anticipated to be increased 3 times during 2018, beginning in March, although some analysts are picking the Fed to raise 4 times.

The GBP weakened on fresh worries over whether Prime Minister Theresa May will be able to execute her Brexit plans.

NZ trade balance will be released at 10:45am

Global equity markets were mixed on the day – Dow -0.3%, S&P500 -0.3%, FTSE +0.1%, DAX -0.5%, CAC -0.1%, Nikkei -0.0%, Shanghai -1.0%.

Gold prices fell 0.9% to USD$1,345 an ounce. Oil prices (WTI) dropped 0.9% to USD$65.53 per barrel.

ends

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