NZDUSD 0.6355 0.1%
NZDEUR 0.5741 -0.4%
NZDGBP 0.5085 -0.4%
NZDJPY 68.75 0.2%
NZDAUD 0.9258 0.2%
NZDCAD 0.8419 0.2%
GBPNZD 1.9666 0.4%
Markets continue to consolidate ahead of tomorrow mornings Federal Reserve monetary policy statement with the CME
Group's Fed Watch Tool currently indicating the market is very much divided as to whether the Fed will remain on hold or
cuts rates by 25 basis points.
One week ago the Fed Watch tool had the probability of a cut at 92.3% but this has been steadily falling and as of this
morning now sits at 51.9%.
The shift in sentiment is largely due to better than expected economic data with this morning’s no exception.
According to the latest Fed report industrial production climbed by 0.6% in August after edging down by an upwardly
revised 0.1% in July. The result was significantly better than forecast and more than reverses July’s previously
reported 0.2% fall.
There was better news for the euro overnight with Germany's economic sentiment improving strongly in September.
According to the latest ZEW Indicator of Economic Sentiment for Germany sentiment climbed to -22.5 in September after
plummeting to -44.1 in August. Economists had expected a -38 reading.
Markets are likely to remain subdued ahead of tomorrow mornings announcement with the tone of the accompanying statement
to dictate direction after the Fed deliver a 25bps cut.
Global equity markets are mixed, - Dow -0.08%, S 500 +0.02%, FTSE -0.01%, DAX -0.06%, CAC +0.24%, Nikkei +0.06%, Shanghai -1.74%.
Gold prices are little changed trading at $1,500 an ounce. WTI Crude Oil prices are down 6% from this time yesterday
currently trading at $59.12 a barrel.
ends