FX News

FX Update: RBNZ on the radar

Market Overview

• This week’s main event is the RBNZ rate announcement with the central bank not expected to drop rates from 5.5%. What will be interesting is the talk regarding the timing of rate cuts with most banks expecting the first cut in November. We think this could be sooner in August/October.
• Chinese Retail Sales y/y prints at 2.3% compared to 3.7% expected – prior 3.1%
• French and German Banks were closed Monday in observance of Whit Monday holiday.
• Gold has hit a new all-time record high of 2,440 per ounce. Some are saying the price could peak at 2,700 by the end of 2024.
• UK inflation this week could show the Bank of England’s target of 2.0% reached.
• The Reserve Bank of Australia is expected to cut rates up to 5 times in 2025 with the RBA only expecting inflation to return to its 2-3% target next year.
• The British Pound (GBP) is the strongest currency to date in 2024 while the Japanese Yen (JPY) is the weakest currency.

Previous ArticleNext Article