HiFX Morning Update, February 26 2018
The NZDUSD opens at 0.7296 (mid-rate) this morning.
The NZD is the worst performer of the G10 currencies since Friday’s open, losing three-quarters of a percent against
most of the majors.
New Zealand Retail Sales surged in Q4 2017, helped by strong growth in dining out and grocery sales. According to
Statistics New Zealand (Stats NZ), Retail Sales volumes jumped by 1.7% for Q4 in seasonally adjusted terms — above the
1.3% gain expected — leaving the increase on a year earlier at 5.4%. It was a substantial improvement in the 0.3% gain
in Q3 which was impacted by the British and Irish Lions tour that helped boost sales in the prior quarter.
Euro Area Annual Inflation rate (CPI) was 1.3% in January 2018, down from 1.4% in December 2017. In January 2017, the
rate was 1.8%. European Union annual inflation was 1.6% in January 2018, down from 1.7% in December 2017. The rate was
1.7% in 2016.
The Canadian Dollar was the best performing currency Friday night as the Canadian Consumer Price Index (CPI) rose 1.7%
on a year-over-year basis in January, following a 1.9% increase in December. The 0.7% increase for the month was ahead
of the 0.4% consensus. Canadian inflation came in stronger than expected in January as signs point to price pressures
continuing to slowly build. Core consumer prices, which exclude more volatile items like energy and are considered a
gauge of inflation pressures, inched higher for a fourth month and are now hovering at the highest since September 2016.
The German economy continued to grow at the end of 2017. The Gross Domestic Product (GDP) increased by 0.6% in Q4 2017
compared with the previous quarter, in line with expectations.
Global equity markets are broadly higher: Dow +1.39%, S 500 +1.60%, FTSE -0.11%, DAX +0.18%, CAC +0.15%, Nikkei +0.72%, Shanghai +0.63%.
Gold prices are down 0.2% trading at $1,328 an ounce. WTI Crude Oil prices have continued higher up 1.5% trading at
$63.70 a barrel.
ends