NZD/USD Drops on Less Hawkish Tone from RBNZ
The central bank of New Zealand stayed on the sidelines again today, but its messaging was more dovish compared to the previous meeting, raising chances of rate cuts within the year
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The central bank of New Zealand stayed on the sidelines again today, but its messaging was more dovish compared to the previous meeting, raising chances of rate cuts within the year
The pair extended its relentless rally to the highest since 1986 as the Fed is hesitant to slash rates and the BoJ is moving slowly to less easy stance, but risk of FX intervention rises
The pair jumped as chances of an RBA rate hike are boosted, after inflation hit six-month highs
The pair continues its surge towards the April multi-decade peak as the Fed’s reluctance to cut helps the greenback, while the BoJ moves slowly away from the easy stance and today’s mixed inflation data don’t help bolder action
The pair reacted higher after the Swiss National Bank (SNB) slashed rates for second straight time, whereas the Fed is reluctant to pivot
The Swiss National Bank (SNB) cut its key interest rate by 25 basis points to 1.25%, amid mixed global monetary policy stances. Two-thirds of economists predicted this move, leading to a weakened Swiss franc, with the Euro up 0.5% and the US dollar rising 0.7%. The SNB forecasts inflation at 1.3% for 2024, 1.1% for 2025, and 1.0% for 2026, with economic growth projected at 1% this year and 1.5%…
The pair is subdued this week as poor US retail sales boost hopes for two Fed rate cuts this year, but monetary policy differential remains favorable
The Australian central bank stayed again on the sidelines and inflation jitters keep rate cut prospects far, in a policy differential that is supportive for the pair, despite the Fed’s reluctance to pivot
The ECB slashed rates this month, as the Fed is reluctant to pivot, with the unfavorable policy differential making the pair vulnerable to its 2024 lows
The pair drops as another strong US jobs report strengthens the Fed’s higher-for-longer stance, while election woes take hold in Europe after France snap elections
Tomorrow the ECB is likely to deliver a 25-bps cut – the first major advanced economy central bank to begin its cutting cycle. The cut is expected, with markets having priced in the cut from 4% to 3.75% for a few weeks now. However, forward guidance will be key here, with market participants focusing on any clues provided regarding future policy direction.
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