IronFX Daily Commentary by Charalambos Pissouros | 10/05/2017
May 10, 2017 9:10 am
RBNZ set to stand pat, may shift to a more upbeat tone • The RBNZ is widely expected to take no action today (21:00 GMT). • At the latest policy meeting the Bank kept the door opening for further easing. • But data have improved drastically since then (CPI, unemployment, inflation expectations). • Even though all these should normally see the RBNZ shift to a more upbeat tune, we think any optimistic message will be very moderate. • Mainly due to concerns over global trade, and due to fears of a speculative surge in NZD. • Although NZD could gain a bit on the decision, it is too early to call for a new-born uptrend.
USD/JPY pares earlier gains after North Korea comments • USD gained notably yesterday, particularly vs JPY. • Likely reasons: Heightened market expectations about a June rate hike, rising risk appetite after the French election. • But pared gains on comments that North Korea will proceed with nuclear tests. • Despite the correction, USD/JPY could resume its short-term uptrend soon, amid a risk-on market environment.
As for the rest of today’s highlights: • Norway: CPI for April (06:00 GMT). Both the headline and core rates are expected to have risen, which could reverse some of NOK’s recent losses. • Speakers: ECB President Mario Draghi (12:00 GMT).
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RBNZ set to stand pat, may shift to a more upbeat tone
• The RBNZ is widely expected to take no action today (21:00 GMT).
• At the latest policy meeting the Bank kept the door opening for further easing.
• But data have improved drastically since then (CPI, unemployment, inflation expectations).
• Even though all these should normally see the RBNZ shift to a more upbeat tune, we think any optimistic message will be very moderate.
• Mainly due to concerns over global trade, and due to fears of a speculative surge in NZD.
• Although NZD could gain a bit on the decision, it is too early to call for a new-born uptrend.
USD/JPY pares earlier gains after North Korea comments
• USD gained notably yesterday, particularly vs JPY.
• Likely reasons: Heightened market expectations about a June rate hike, rising risk appetite after the French election.
• But pared gains on comments that North Korea will proceed with nuclear tests.
• Despite the correction, USD/JPY could resume its short-term uptrend soon, amid a risk-on market environment.
As for the rest of today’s highlights:
• Norway: CPI for April (06:00 GMT). Both the headline and core rates are expected to have risen, which could reverse some of NOK’s recent losses.
• Speakers: ECB President Mario Draghi (12:00 GMT).
Join us for more technical and fundamental analysis: http://www.ironfx.com
To get the latest Forex trading news you should:
• Download the IronFX Research app: http://goo.gl/jhQIxO
• Like us on Facebook: https://www.facebook.com/IronFX
• Follow us on Instagram: https://www.instagram.com/ironfx
• Follow us on LinkedIn: https://goo.gl/wSEbPN
• Follow us on Twitter: https://twitter.com/IronFXGlobal
• Circle us on Google+: https://www.google.com/+Ironfxglobal
• Subscribe to our Channel: http://bit.ly/1foFmCU
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