Market Overview
Key Points:
• The Queen’s Funeral was predicted to have been watched by over 4 billion viewers around the world making it the most watched broadcast in history.
• The Federal Reserve is expected to continue with their tightening plans this week and raise rates 75 points to 3.25%, however its 50/50 the Fed raises 1%
• Member Joachim of the European Central Bank spoke over the weekend saying “we must bring inflation back under control, we mustn’t let up, even if the economy worsens
• Japan is to use 3.5T (209B USD) in reserve funds reserved for economic measures to address inflationary pressures
• ANZ picks the RBNZ Cash rate to peak at 4.75% mid 2023
• We expect an overly hawkish tone at this week’s Bank of England rate release which could stir UK recession fears and further weaken the Pound
• The US Dollar (USD) has been the strongest currency over the month of September while the Japanese Yen (JPY) has been the weakest, this is closely followed by the New Zealand Dollar (NZD)
• The NZD has broken through key support and psychological 0.6000 with this level now acting as resistance in the NZD/USD cross, if we don’t see a proper pickup through this zone this week we could see further “southern action” continue.
Major Announcements last week:
- US CPI q/q 0.6%
- UK CPI y/y 9.9% – forecast 10.0%
- NZ GDP q/q 1.7%
- Australian Unemployment Rate 3.5% vs 3.4% predicted
- UK Retail Sales August -1.6%