Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

HiFX Morning Update – Trump’s Iran move

The NZDUSD opens at 0.6968 (mid-rate) this morning.

This morning President Trump announced the US will withdraw from the Iran nuclear deal forged under the Obama administration and reinstate sanctions on Tehran which were suspended under the 2015 accord.

We will be instituting the highest level of economic sanction," Trump said. "Any nation that helps Iran in its quest for nuclear weapons could also be strongly sanctioned by the United States."

Crude oil prices which plummeted ahead of the announcement took commodity-linked currencies including the NZD, AUD and CAD with it. WTI prices which were down 3% ahead of the announcement are bouncing back as I type, currently down 1.2%.

The USD had earlier received a boost as investors interrupted Fed Chairman Jerome Powell’s speech on monetary policy as dollar positive. Mr Powell said “Fed policy normalization has proceeded without disruption to financial markets, and market participants’ expectations for policy seem reasonably well aligned with policymakers’ expectations.” The market is currently expecting two further rate hikes in 2018 followed by another three hikes in 2019.

The threat of a snap election in Italy after coalition talks between the anti-establishment 5-Star-Movement and the anti-immigrant and anti-European Union League broke down has seen the EUR decline against all its rivals.

Global equity markets are mixed- Dow +0.10%, S&P 500 -025%, FTSE -0.02%, DAX -0.28%, CAC -0.17%, Nikkei +0.18%, Shanghai +0.79%.

Gold prices are trading back at $1,314 after rising to $1317 as the market awaited Trump's speech. WTI Crude Oil prices which were down 3% ahead of Trump’s speech are bouncing back currently trading at $69.75 a barrel.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Still Gaining: More Migrants Head Back Overseas

Annual net migration is down 4,800 from a high point a year ago, largely because more non-New Zealand citizens are leaving the country, Stats NZ said today. More>>

Christchurch: Red Zone Used To Boost Endangered Bee Population

“May 20 has been declared World Bee Day by the United Nations, and I am pleased to announce today that we have been able to use the red zone to protect and grow our native bee stocks,” says Minister Megan Woods. More>>

Trips, Support, Conferences For Agents: Insurers Spend $34 Million On Soft Commissions

“We are concerned that insurers are designing and offering incentives that potentially set advisers up to fail in complying with their obligations.” More>>

ALSO:

Privacy Commissioner: Facial Recognition Tech Not Reliable

The Privacy Commissioner says businesses should take great care when using facial recognition technology because there is a high risk of misidentification. More>>

Compliance Costs: Cheesemakers "Have A Reason To Smile"

Delighted to be a guest at The Great Eketahuna Cheese Festival today, Mr O’Connor launched the Food Safety Template for Cheesemakers – a tool to help cheesemakers producing cheese for New Zealand and Australia to meet food safety requirements. More>>

Te Uru Rākau: NZ Forestry Now Future Proofed

The Associate Minister of Forestry the Hon Meka Whaitiri says the launch of Te Uru Rākau will mean that the New Zealand forestry industry will be future proofed. More>>

ALSO:

Minister Of Tourism Speech: TRENZ 2018

Tourism is an economic bedrock. It’s our biggest export earner, employs hundreds of thousands of people, and the industry is the world’s window into our beautiful country. More>>

ALSO: