FX News

FX update: risk sinks the antipodeans

Market Overview

• Risk markets have all traded lower in response to the recent attacks on Israel by Iran. Its certainly a sensitive time in history for geopolitics after Iran launched an air strike attack on Israel over the weekend. US president Biden saying the US wouldn’t support an Israeli counterattack against Iran.
• The US Dollar vs the Japanese Yen is making new 30-year highs.
• Gold has risen to 2,380 in the past few days with expectations of the precious metal souring to 2,700 by year end.
• New Zealand Services PMI has contracted in March, the index 47.5 vs 53.0 prior.
• Analysts are suggesting the European Central Bank (ECB) may cut interest rates as early as May 6th.
• US Rate cuts in July are priced in at 66% based on the uncertainty with inflation.
• New Zealand inflation for the 1st quarter ending March is due on Wednesday and is expected to rise 0.7%, this would drop the year-on-year figure to 4.3% from 4.74%, the lowest inflation rate since 2021.
• New Zealand medium house prices March +7.4% up on February.
• The US Dollar (USD) has been the strongest currency this week while the weakest currency is the New Zealand Dollar (NZD).

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