Yahoo Finance The RBNZ Holds Steady as Focus Shifts to the G20 and the Greenback
Earlier in the Day:
There were no material stats to provide direction through the Asian session this morning.
Outside of the stats, the RBNZ delivered its June monetary policy decision, while geopolitics continued to influence.
For the Kiwi Dollar
The RBNZ held rates unchanged at 1.5%, which was in line with market expectations.
According to the RBNZ Rate Statement, further rate cuts may be needed when considering the downside risks to employment and inflation.
The Kiwi Dollar moved from $0.66357 to $0.66465 upon release of the statement. At the time of writing, the Kiwi Dollar was up by 0.11% to $0.6646.
Elsewhere
The Aussie Dollar was up by 0.03% to $0.6963, while the Japanese Yen was down by 0.23% to ¥107.45 against the U.S Dollar.
The Day Ahead:
For the EUR
There are no material stats due out of the Eurozone today.
Key stats due out of the Eurozone include Germany’s July GfK Consumer Climate figures and French jobseeker numbers.
Barring any shock numbers from France, the market focus will be on Germany’s consumer confidence figures due out later this morning.
Outside of the stats, geopolitics will continue to be in focus.
At the time of writing, the EUR was down by 0.11% to $1.1355.
For the Pound
There are no material stats due out of the UK today to provide direction for the Pound.
While there are no stats, the UK Inflation Report Hearings will provide direction in the early afternoon.
BoE Governor Carney and the MPC stepped back from talking up a near-term rate hike in last week’s MPC.
Carney had previously stated that the BoE would need to lift rates at a more rapid pace to curb inflation. Today’s commentary could further ease any expectations of a rate hike this year, which would pin back the Pound.
At the time of writing, the Pound was down by 0.02% to $1.2687.
Across the Pond
It’s a relatively busy day on the economic calendar.
May trade data and durable goods orders are due out of the U.S later this afternoon.
While we can expect the durable goods orders to be the key driver, the trade figures will garner some attention.
Outside of the numbers, expect further chatter from the U.S administration on Iran and the U.S – China trade war.
The G20 is almost upon us…FED Chair Powell, who spoke late in the U.S session on Tuesday, held back from talking up the chances of a near-term rate cut. The FED Chair did, however, note that downside risks to the economy had increased.
At the time of writing, the Dollar Spot Index was up by 0.15% to 96.286.
For the Loonie
It’s yet another quiet day on the economic calendar, with no material stats due out of Canada today.
Direction through the day will come from market risk appetite that will continue to be driven by market sentiment towards Iran and China.
Overnight monetary policy chatter also led to a shift in sentiment towards a near-term FED rate hike, which provided support to the Greenback.
The Loonie was down by 0.11% to C$1.3183, against the U.S Dollar, at the time of writing.
This article was originally posted on FX Empire
More From FXEMPIRE:
Bitcoin Cash – ABC, Litecoin and Ripple Daily Analysis – 27/06/19
US Stock Market Overview – Stocks Trade Mixed, Energy Shares Rally
It’s Risk on with the Markets Hoping for a Resolution to the Trade War
Price of Gold Fundamental Daily Forecast – Weaker as Chances of 50bp Fed Rate Cut Fade
Forex Daily Recap – Kiwi Pair Soared +0.84% after RBNZ’s Rate Decision
