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The UK/US Trade agreement, announced on VE Day, was a big boost to the UK economy and the currency. The cross-rate did not suffer the same set-back as the EUR, due to these benefits associated with the US Trade Agreement. The cross-rate moved back to 0.4450 and mirrors moves by the commodity currencies.
Current Level: 0.4417
Resistance: 0.4500
Support: 0.4300
Last Weeks Range: 0.4425- 0.4505
The ECB remains firmly committed to their ongoing hawkish monetary policy, with the mantra, ‘higher for longer’. The Central Bank has some latitude, as their rates trade at a severe discount, to the UK and USA. PMI data in Europe has been extremely weak and reflects the recessionary economic conditions, as softer energy prices aid…
Market Overview • US Equities turned down to close the week with the NZD struggling to remain above 0.6000. Early Monday prices revealed “risk” is back on as confidence returns with the NZD and AUD both bouncing higher. • June Japanese CPI 2.8% y/y vs 2.9% expected. • US President Biden has removed himself from…
The NZD has come crashing down, in recent times, due to the RBNZ’s sudden awakening. Governor Orr completely missed the inflation boat. The realisation that recessionary economic conditions in the NZ economy, had crushed inflation, was a long time coming. The reaction was swift and dramatic. He cut interest rates by 75 basis points, before…
Market Overview Australia Commodity currencies were lower against the USD overnight, with the Australian dollar slipping to its weakest level since June. The AUD extended its losses after a disappointing trade surplus report which saw the data falling woefully short of expectations, coming in at 0.1B versus 1.4B expected. The sharp fall off in exports,…
Contact us for a free online quote Below are the weekly economic releases for this week (NZT) Monday 24/02 1045am, NZD, Retail Sales q/q Forecast 0.80% Previous 1.70% Actual 0.70% All Day, JPY, Bank Holiday 10pm, EUR, German Ifo Business Climate, Forecast 95 Previous 95.9 Wednesday 26/02 4am, USD, CB Consumer Confidence Forecast 132.6 Previous 131.6
The Australian Dollar (AUD) has retreated off Friday’s 0.4855 (2.0600) level against the British Pound (GBP) stalling to 0.4760 (2.1020) Monday bouncing off key resistance before making back gains in early Tuesday to 0.4780 (2.0920). Australian PMI data showed modest growth at 51.2 up from 50.5 with manufacturing holding at 51.0 showing a positive response…