IronFX, Daily Report: RBNZ decided to remain on hold & Kim and Trump meeting in Singapore?
What investors are looking today? Here are some economic highlights of the day!
This article is originally referred from IronFX News.
RBNZ decided to remain on hold
- RBNZ decided to remain on hold at +1.75% as was widely expected during today’s early Asian morning.
- The accompanying statement had a more dovish tone as it stressed out twice that the bank does not expect it’s interest rate to change or a while in the future, characterising the +1.75% as an expansionary level.
- Also the statement mentioned an unprecedented increase in employment and that the best contribution to maximising sustainable employment would be to keep the OCR at it’s current level. As for the future, the direction of the next move is equally balanced.
- Overall, the NZD/USD dropped by some 30 pips, as the market expected the decision. We see the case for a weaker kiwi in the near future as the RBNZ seems quite comfortable with it.
Singapore most probably meeting place of Kim and Trump
- Media suggested that Singapore will be the meeting place of Kim and Trump, after Mike Pompeo , the US Secretary of state returned from North Korea where he made preparations for the upcoming meeting.
- Pompeo, returned to the US with three released American citizens. The North Korean move was considered as a gesture of goodwill towards the US.
- On other news, S. Korea, China and Japan agreed that North Korea should be given aid if it denuclearizes and highlighted their unity amid North Korea moves.
- Should there be further positive news on the issue we could see stability starting to settle in the region.
Today’s other economic highlights
- Avast IPO on the London Stock Exchange
- Manufacturing Output for March, Survey:-0.2%mom Prior: -0.2% mom, 08:30 (GMT), could weaken the GBP
- Trade Balance for March, Survey: -11.25B Prior: -10.20B, 08:30 (GMT), could weaken the GBP
- BoE Interest Rate decision, Survey: +0.50%, Prior: +0.50%, 11:00 (GMT), 86.30% probability to remain on hold (GBP OIS)
Inflation report, 11:00 (GMT)
- CPI for April, Survey: +2.5% yoy Prior: +2.4% yoy, 12:30 (GMT), could strengthen USD
- Core CPI for April, Survey: +2.2% yoy Prior: +2.1 yoy, 12:30 (GMT), could strengthen USD
- Initial Jobless claims, Survey: +218k Prior:+211K, 12:30 (GMT), could weaken the USD
IronFX Daily Analysis ‘May 10th’
Original Source: IronFX News
CFD Service. Your capital is at risk.
- Open an Account
- Review (1)