FX Handover: Kiwi flies on RBNZ hold

  • NZD strongest with commodity dollars all pushing higher; GBP has been the weakest link so far in the session amid ongoing Brexit uncertainty.
  • Trump was at it again this morning, saying the US should have ECB’s Draghi instead of `our Fed person' in his latest criticism of Jay Powell. This comes after Powell and his colleague Bullard were a lot less dovish than expected in their speeches yesterday, enabling the dollar to find some much-needed support.
  • Several pairs have more than achieved their ATR objectives, paving the way for a potential reversal as we head to the US session.
  • Overnight, RBNZ chose not to cut rates overnight, and surprised traders with a statement that was not as dovish as had been expected – the central bank keeping a cut in August as a ‘maybe’ and not a ‘likely’, triggering a short covering bounce on the Kiwi
  • European stocks bounced after initially extending yesterday’s losses, causing safe-haven gold to retreat from the highs slightly.

Related tags: Forex

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