FX News

Delta Concerns Weigh on Risk

Market Overview

• Worldwide coronavirus cases surpass 191.670 million with over 4.112 million official
• Markets are now pricing in a 90% chance of a RBNZ rate hike in August this year, this was May 2022 until recently
• 55 cases linked to athletes in the Olympic village have tested positive for coronavirus since 1 July
• Canada will reopen its borders with the US on August 9th.
• Japanese Inflation jumped to 0.2% from -0.1% expected to June 2021 y/y
• Australian lockdowns in Sydney and the state of Victoria are predicted to cost the economy 10B and shrink the countries GDP by as much as 1.5% in the third quarter figures
• Crude Oil settles at 66.80 per barrel down -7.5% on the day after demand drops

Major Announcements last week:

  • US CPI y/y rose to 5.4% form 5.00%
  • RBNZ left rates unchanged at 0.25%
  • US PPI improved to 1.0% in June from 0.8% in May
  • Bank of Canada leaves their cash rate unchanged at 0.25%
  • NZ quartelry CPI grows 1.3% to June from 0.8% in the first quarter and 3.3% y/y
  • US Retail Sales beats estimates of 0.4% in June coming in at 1.3% m/m
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