Scoop has an Ethical Paywall
HiFX Morning Update, March 22 2018
HiFX Morning Update, March 22 2018
The NZDUSD opens at
0.7208 (mid-rate) this morning.
As widely expected the Federal Reserve has raised rates for the first time in 2018 and signalled that at least two further hikes are coming before the end of the year.
New Federal Reserve Governor Jerome Powell announced that the central bank now sees the benchmark rate at 2.9% in 2019 and 3.4% in 2020 up from 2.7% and 3.1% respectively. The 10yr Bond yield has pushed up from 2.87% prior announcement to 2.92%.
“The economic outlook has strengthened in recent months,” with officials also repeating previous language that they anticipate “further gradual adjustments in the stance of monetary policy”.
The vote to raise the federal funds rate target range to 1.5% to 1.75% was a unanimous 8-0. The quarterly forecasts showed that policymakers were divided over the outlook for the benchmark interest rate in 2018. Seven officials projected at least four quarter-point hikes would be appropriate this year, while eight expected three or fewer increases to be warranted.
Wage growth in the UK accelerated at the fastest pace in more than two years during the three months to January Average earnings excluding bonuses grew 2.6% year-on-year in the three months to January, which was the fastest pace since November 2016, when regular pay rose 2.7%.
This morning the RBNZ acting Governor Grant Spencer is expected to confirm that the RBNZ are in no hurry to hike rates and that the current record low of 1.75% should remain unchanged for the foreseeable future.
Global equity markets are mixed - Dow +0.45%, S&P 500 +0.31%, FTSE -0.32%, DAX +0.01%, CAC -0.24%, Nikkei -0.47%, Shanghai -0.29%.
Gold prices are up 0.8% trading at $1,322 an ounce. WTI Crude Oil prices continue to spike, up 2.0% over the past 24 hours, trading at $64.72 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
Business Canterbury: Urges Council To Cut Costs, Not Ambition For City
Wellington Airport: On Track For Net Zero Emissions By 2028
Landcare Research: ANZAC Gall Fly Release Promises Natural Solution To Weed Threat
NZ Anti-Vivisection Society: Auckland Rat Lovers Unite!
University of Canterbury: $1.35 Million Grant To Study Lion-like Jumping Spiders
Federated Farmers: Government Ends War On Farming
