IronFX Daily Commentary by Charalambos Pissouros | 11/08/2016
August 11, 2016 8:36 am
RBNZ cuts rates and signals more to come • RBNZ met market expectations and cut rates by 25bps. • Even though the Bank signalled that further easing will be required, NZD soared on the news as investors’ yield-hunting continues. • In the statement, Bank officials noted that a decline in the exchange rate is needed but didn’t mentioned that it is overvalued or higher than appropriate. • However, if NZD continues to defy RBNZ expectations, the risk for another rate cut increases. • NZD is expected to remain supported by its relatively high bond yields, but further advances pose risks of another rate cut or even direct FX intervention.
Today: • Sweden: CPI for Jul. is exp. to slow, which could bring SEK under renewed selling interest. Also, PES unemployment rate for Jul. • US: Initial jobless claims for the week ended Aug. 5th.
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RBNZ cuts rates and signals more to come
• RBNZ met market expectations and cut rates by 25bps.
• Even though the Bank signalled that further easing will be required, NZD soared on the news as investors’ yield-hunting continues.
• In the statement, Bank officials noted that a decline in the exchange rate is needed but didn’t mentioned that it is overvalued or higher than appropriate.
• However, if NZD continues to defy RBNZ expectations, the risk for another rate cut increases.
• NZD is expected to remain supported by its relatively high bond yields, but further advances pose risks of another rate cut or even direct FX intervention.
Today:
• Sweden: CPI for Jul. is exp. to slow, which could bring SEK under renewed selling interest. Also, PES unemployment rate for Jul.
• US: Initial jobless claims for the week ended Aug. 5th.
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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