XE Morning Update
The NZDUSD opens at 0.6369 (mid-rate) this morning.
The NZD is the only currency keeping pace with the British pound, which has pushed higher as the chances of a Conservative win increase.
News that the Brexit Party will not contest the 317 electorates that the Conservative Party won in the 2017 election, and will instead focus all their efforts on Labour held seats, has seen the pound push higher as the odds of a Tory Party victory surge above 60%.
The NZD has pushed higher as investors trim their short positions ahead of tomorrow afternoon’s RBNZ policy meeting. Although the market is still pricing in a 65% chance of a 25bps cut by the Reserve bank there is a growing school of thought that unless the accompanying statement is particularly dovish the NZD should rebound from any knee jerk reaction to a cut.
Direction for the NZD ahead of tomorrow’s MPS will be dictated by this afternoon’s RBNZ 2-year inflation expectations release, which currently sits at 1.86%.
Global equity markets broadly lower, - Dow -0.01%, S&P 500 -0.12%, FTSE -0.42%, DAX -0.23%, CAC +0.07%, Nikkei -0.26%, Shanghai -1.83%
Gold prices are little changed trading
at $1,456 an ounce. WTI Crude Oil prices
have inched lower, down 0.5% at $56.97 a