FX Brief: NZD Weaker On Mention Of QE
Matt Simpson July 23, 2019 5:41 AM
- NZD took a knock in early trade on reports that RBNZ were ‘at the very early stage’ of looking at refreshing unconventional policy (QE). NZD is the weakest major and USD is the strongest, sending NZD/USD down to a 3-day low.
- RBA’s Kent says RBA will adjust policy ‘if needed’ to meet targets. Australia are a long way from QE and it remains a low likelihood. Policy easing is still a positive for Australia and expects AUD would be trading higher without recent cuts. On the Fed, rate cuts should be already prices into currencies.
- News that South Korea had fired a warning shot at a Russian military plane failed to register with markets.
- It’s widely expected that the UK conservative party will announce Boris Jonson as their new leader today and, therefore, UK’s new PM. With the British pound remaining under pressure ahead of the event, we may well see some profit taking if the expected is confirmed. However, if the unexpected were to materialise with Jeremy Hunt taking the job, we could see further upside for GBP over the near-term. Overall, we don’t expect the announcement to be a volatile event.
- Data-wise its mostly low tiered data, so we could find markets remain in tight ranges in the lead up to this week’s ECB meeting.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.