IronFX Daily Commentary by Marios Hadjikyriacos | 10/11/2016
November 10, 2016 9:38 am
What election? Back to square one • The name of the game was countermoves yesterday, in the aftermath of the election. • All of the asset classes that reacted to the initial election outcome began moving in the opposite direction after the result was official. • Most FX pairs corrected significantly, to trade more or less unchanged compared to their pre-election levels. • But some (CAD, MXN, AUD, NZD) did not recover fully, possibly on trade concerns.
Overnight: RBNZ cuts rates, but NZD trades in rollercoaster mode • The RBNZ reduced its policy rate to 1.75% from 2.0%, as expected. • Surprisingly, NZD surged, as the Bank signalled this may be its last rate cut for a while. • But then it plunged, after Gov. Wheeler said he is open to FX intervention in NZD! • NZD may correct lower in the near-term, on this intervention warning and fears of increased trade protectionism globally (Trump).
Today’s highlights: • Norway: CPI rate for Oct. is exp. to decline marginally, but to remain above the Norges Bank target. This could prove NOK-positive.
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What election? Back to square one
• The name of the game was countermoves yesterday, in the aftermath of the election.
• All of the asset classes that reacted to the initial election outcome began moving in the opposite direction after the result was official.
• Most FX pairs corrected significantly, to trade more or less unchanged compared to their pre-election levels.
• But some (CAD, MXN, AUD, NZD) did not recover fully, possibly on trade concerns.
Overnight: RBNZ cuts rates, but NZD trades in rollercoaster mode
• The RBNZ reduced its policy rate to 1.75% from 2.0%, as expected.
• Surprisingly, NZD surged, as the Bank signalled this may be its last rate cut for a while.
• But then it plunged, after Gov. Wheeler said he is open to FX intervention in NZD!
• NZD may correct lower in the near-term, on this intervention warning and fears of increased trade protectionism globally (Trump).
Today’s highlights:
• Norway: CPI rate for Oct. is exp. to decline marginally, but to remain above the Norges Bank target. This could prove NOK-positive.
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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