What investors have been focusing on today?
This article is originally referred from IronFX News.
RBNZ Interest Rate Decision
- RBNZ is to announce on Thursday during the early Asian morning, it’s interest rate decision and is expected to stay pat at 1.75%.
- Currently, the market seems to have priced in the possibility of RBNZ remaining on hold by 99.14% (NZD OIS).
- The decision will be the first with Adrian Orr as governor of RBNZ and the first with a dual mandate (unemployment and inflation).
- Market focus is expected to shift to the accompanying statement as well as the following press conference.
- We see the case for accompanying statement to retain a neutral to dovish tone, especially as the inflation rate dropped to +1.1% yoy which is at the lower bound of RBNZ’s target (2±1%).
- Should there be a rather dovish statement we could see NZD weakening.
Trump to announce decision on Iran nuclear deal
- President Trump tweeted on Monday that he will announce his decision on the Iran nuclear deal on Tuesday.
- Should the US decide to impose sanctions on Iran’s central bank and oil exports we could see instability rising in the region.
- Iran’s possible retaliation movements could include a reactivation of its uranium enrichment program as well as strengthening of Shiite forces in Iraq, Syria, Lebanon and Yemen, producing further instability in the region.
- Any further instability in the region could increase oil prices as well as strengthen safe havens.
Today’s other economic highlights
- Germany: Industrial Output for March, Survey:+0.8% mom Prior:-1.6% mom, 06:00 (GMT), could strengthen the EUR
- Trade Balance for March, Survey: +20.0B Prior:+19.2B, 06:00 (GMT), could strengthen the EUR
- UK: Halifax House Prices for April, Survey: -0.2% mom Prior: +1.5% mom, 09:30 (GMT), could weaken the GBP
- Canada: House Starts for April, Survey: 220.0k Prior: 225.2k, ≈12:15 (GMT), could weaken the CAD
- US: JOLTS Job Opening, Survey: 6.020m Prior: 6.052m, ≈14:00 (GMT), could weaken USD
- API weekly crude oil stocks, Survey: N/A Prior: 3.427 m, 20:30 (GMT), any reading>3.427m could weaken oil prices
- Speakers: Fed Chair Jerome Powell speaks (07:15, GMT).
Original Source: IronFX News