HiFX morning Update, January 16 2019

The NZDUSD opens at 0.6805 (mid-rate) this morning.

The British pound is the major mover overnight, down circa 1.0% ahead of this morning’s parliamentary Brexit vote.

MP’s will go behind closed doors at 08:00am this morning where members will vote on four backbench amendments that may reshape the current deal before then voting on the withdrawal agreement itself.

Labour leader Jeremy Corbyn is reportedly planning to demand a no confidence vote in the government should the deal get voted down, which could lead to a general election and a possible second referendum.

Global equity markets have pushed higher overnight after China announced it would step up stimulus measures, including value-added tax cuts for certain industries. Although no details of the tax cuts have been released, Ministry of Finance officials described these tax cuts as “on a larger scale” with economists estimating the total impact will be around 2 trillion yuan (USD$300 billion).

Global equity markets are broadly higher, Dow +0.77%, S&P 500 +1.16%, FTSE +0.58%, DAX +0.33%, CAC +0.49%, Nikkei +0.96%, Shanghai +1.36%.

Gold prices have edged lower, down 0.2% trading at $1,287 an ounce. WTI Crude Oil prices have retraced yesterday’s fall currently up 0.9% trading at $52.10 a barrel.

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