Scoop has an Ethical Paywall
HiFX Morning Update, March 21 2018
HiFX Morning Update, March 21 2018
The NZDUSD opens at
0.7192 (mid-rate) this morning.
The NZD is the weakest performing G10 currency coming under pressure after the spread between the New Zealand and US 10-year government bond yields turned negative for the first time since records began back in the mid-1990s.
Earlier this morning the latest Global Dairy Trade (GDT) auction resulted in another fall in dairy prices with the index down 1.25 following on from the previous 0.6% fall a fortnight ago. Whole Milk Powder was the only product to increase edging up 0.1%, while skimmed milk prices suffered the largest fall down 8.6%. Volumes were also down with 18,365MT’s selling at this morning’s auction down from 19,292 MT’s at the last event.
The USD has risen against all its rivals overnight as investors position their books ahead of tomorrow morning’s FOMC meeting. The Fed is widely expected to hike its benchmark by 25 basis points to 1.75% from the current 1.50%. Direction is likely to be driven by the following press conference and any revision to the Fed's dot-plot forecasts which showed three rate hikes for 2018 at the December meeting.
Overnight the ZEW Indicator of Economic Sentiment for Germany plummeted sharply in March with the index falling to 5.1 down 12.7pts from 17.8 in February. The fall was a direct result of global trade concerns following Trump’s announcement of possible tariffs.
A slowdown in UK inflation in February with consumer prices rising by an annual rate of 2.7% (exp 2.8%) and down from 3.0% in January has had little effect on the British pound, which continues to benefit from yesterday’s Brexit transition agreement.
Global equity markets are broadly higher - Dow +0.40%, S&P 500 +0.10%, FTSE +0.26%, DAX +0.74%, CAC +0.57%, Nikkei -0.47%, Shanghai +0.35%.
Gold prices have edged down 0.5% trading at $1,311 an ounce. WTI Crude Oil prices have risen sharply, up 2.2% over the past 24 hours, trading at $63.47 a barrel.
ends
HiFX
International Payments Expertly Done
HiFX is one of the largest foreign exchange and international payment specialists in the world, managing over $30 billion on behalf of over 100,000 clients worldwide every year.
Large enough to undertake the biggest transactions, yet small enough to care about each and every one – send and receive overseas payments and manage your account anytime, anywhere. HiFX gives you the flexibility you need to transfer money quickly and easily via a secure online platform 24 hours a day, seven days a week - making moving money as easy as 1,2,3.
HiFX Ltd ABN 54 106 779 953/ AFSL No 240914
University of Canterbury: What Makes People Tick Environmentally?
Gallagher Security: Release Of New Command Centre Unlocks New Era Of Security Tech
Fix & Fogg: NASA Hand-picks Kiwi Nut Butter Brand To Travel To Space In NZ First
Citizens of the Sea: Sailors To Revolutionise Our Understanding Of Pacific Biodiversity
Netsafe: Making A Splash With Online Safety: Netsafe Launches New Flagship Programme For Kids
NZGBC: Flood Resilience PhD Student Widi Auliagisni Named Future Thinker Of The Year 2024
