Daily Update – 8th August 2019
• NZD RBNZ Interest Rate Decision, Monetary Policy Statement After the Federal Reserve and the RBA, yesterday, the RBNZ also opted for an ease in the monetary policy. Notably, the policymakers of RBNZ have made a steep cut of 50bps, lowering the intereste rates to 1.00%. The market had expected the Central Bank to come up with a 25bps this time. Anyhow, the actual interest rate decision stunned the market participants. The Bank’s Meeting minutes mentioned about the escalating US-Sino trade tensions as the primary reason for such a massive cut. Following the RBNZ interest rate announcement, the Kiwi pair dropped almost 2%, reaching 0.6455 level, last touched in 2016. The euro edged higher against the U.S. dollar on Wednesday, as investors remained cautious on risk after the U.S. branded China a currency manipulator, escalating their trade war. Euro gained, after Washington designated Beijing a currency manipulator. Sterling declined against dollar on Wednesday, as investors further priced in the probability of Britain leaving the European Union without a deal in place. The UK government insists that will leave the EU on October 31 with or without a deal, but wants to reopen the Withdrawal Agreement, something that European representatives have repeatedly rejected. • USD Jobless Claims Reports • JPY Gross Domestic Product The Initial Jobless Claims released by the US Department of Labor is a measure of the number of people filing first-time claims for state unemployment insurance. In other words, it provides a measure of strength in the labor market. A larger than expected number indicates weakness in this market which influences the strength and direction of the US economy. There are no relevant macroeconomic events scheduled for this Thursday in Europe and the US, during Asian trading hours, the kingdom will publish the RICS House Price Balance for JulyYesterday's Focus
Yesterday's Focus
Today's Focus
Today’s Market
