HiFX Morning Update, March 1 2018
The NZDUSD opens at 0.7214 (mid-rate) this morning.
The NZD has lost ground against most of the major currencies. The NZD/USD looks to test support at 0.7200 however the
Kiwi gained against the GBP on Brexit updates.
This morning the EU released their draft treaty, and to the disappointment of UK Prime Minister Theresa May the
Europeans have announced that Northern Ireland could remain part of the customs union, which puts a spanner in the works
for the UK PM, who has already made it clear that Brexit will not split up the UK. The GBP weakened against the other
majors particularly the JPY.
U.S. economic growth slowed slightly more than initially thought in Q4 as the strongest pace of consumer spending in
three years drew in imports and depleted inventories. U.S. Gross domestic product expanded at a 2.5% annual rate in the
final three months of 2017, instead of the previously reported 2.6% pace, the Commerce Department said in its second GDP
estimate.
The U.S. Chicago Business Barometer fell 3.8 points to 61.9 in February, down from 65.7 in January, to the lowest level
since August 2017. Business activity continued to expand in February, although at a softer pace than in January.
After seeing a modest three-month rise in activity, U.S. Pending Home Sales cooled considerably in January to their
lowest level in over three years, according to the National Association of Realtors. All major regions experienced
monthly and annual declines in contract signings last month. The Pending Home Sales Index fell 4.7% to 104.6 in January
from a downwardly revised 109.8 in December 2017.
Oil futures traded lower overnight after data showed industrial activity in some of the world's major crude-consuming
nations has softened. Traders said oil prices declined on concerns of a slowdown in the global economy after three out
of the world's top consumers of crude — China, India and Japan — reported a slowdown in monthly factory activity.
In February 2018, the Swiss KOF Economic Barometer rose by 0.4 points to a new reading of 108.0 well above its long term
average.
Global equity markets are lower except the US: Dow -0.01%, S 500 -+0.22%, FTSE -0.69%, DAX -0.44%, CAC -0.44%, Nikkei +1.44%, Shanghai -0.99%.
Gold prices gained 0.2% currently trading at $1,318 an ounce. WTI Crude Oil prices are down 0.8% trading at $62.76 a
barrel.
ends