US Open Note – Kiwi shines after RBNZ’s hawkish stance; Dollar remains below 109 yen
May 26, 2021 1:25 pm
RBNZ less dovish message drives kiwi up
Kiwi is the best performing currency today versus the US dollar, surpassing the 0.7300 handle and recording a fresh three-month high. The Reserve Bank of New Zealand (RBNZ) projected a rate hike by September 2022, taking the economy closer to an exit from the pandemic situation. The bank signalled a less dovish message in May, while leaving monetary policy steady, as it revised up its forecasts for inflation higher but lowered them for unemployment.
In other commodity currencies, the aussie is gaining some ground. However, the loonie is still hovering around its six-year high.
Dollar holds below 109 yen
The US dollar index is facing somewhat positive momentum today, after two straight negative days, while dollar/yen is finding strong resistance at the 109.00 psychological level over the last couple of days. The greenback is waiting for strong US data and higher US rates to have a notable rise. US futures stocks are looking positive on Thursday after a negative session on Tuesday. US yields rose marginally on speculation that the Fed will decide at one of its next policy meetings whether to start tapering.
The US and Russian presidents will hold a meeting in Geneva on June 16 for the first time since Biden’s election. The major themes that they are going to be discussed are Russia’s cyber-attacks, military aggression, and Belarus and human rights abuses. Biden is trying to improve America’s ties Russia after Donald Trump’s incumbency.
Euro and pound fail to create significant moves
The euro is down today, falling below the $1.2265 peak that achieved yesterday, while sterling is lagging, unable to hold above $1.4200. European stocks have erased earlier gains, after ending Tuesday near record highs as traders await more information over the trajectory of inflation. UK Prime Minister Johnson’s former advisor, Dominic Cummings will give today evidence about the government’s handling of the pandemic to a Parliamentary committee.
Elsewhere, gold is skyrocketing above $1,900/per ounce, continuing the two-month upside rally. WTI crude oil is unchanged, holding near $65.84/per barrel, while a jump above $67.96/per barrel could drive a move towards $70.00/per barrel.
RBNZ less dovish message drives kiwi up
Kiwi is the best performing currency today versus the US dollar, surpassing the 0.7300 handle and recording a fresh three-month high. The Reserve Bank of New Zealand (RBNZ) projected a rate hike by September 2022, taking the economy closer to an exit from the pandemic situation. The bank signalled a less dovish message in May, while leaving monetary policy steady, as it revised up its forecasts for inflation higher but lowered them for unemployment.
In other commodity currencies, the aussie is gaining some ground. However, the loonie is still hovering around its six-year high.
Dollar holds below 109 yen
The US dollar index is facing somewhat positive momentum today, after two straight negative days, while dollar/yen is finding strong resistance at the 109.00 psychological level over the last couple of days. The greenback is waiting for strong US data and higher US rates to have a notable rise. US futures stocks are looking positive on Thursday after a negative session on Tuesday. US yields rose marginally on speculation that the Fed will decide at one of its next policy meetings whether to start tapering.
The US and Russian presidents will hold a meeting in Geneva on June 16 for the first time since Biden’s election. The major themes that they are going to be discussed are Russia’s cyber-attacks, military aggression, and Belarus and human rights abuses. Biden is trying to improve America’s ties Russia after Donald Trump’s incumbency.
Euro and pound fail to create significant moves
The euro is down today, falling below the $1.2265 peak that achieved yesterday, while sterling is lagging, unable to hold above $1.4200. European stocks have erased earlier gains, after ending Tuesday near record highs as traders await more information over the trajectory of inflation. UK Prime Minister Johnson’s former advisor, Dominic Cummings will give today evidence about the government’s handling of the pandemic to a Parliamentary committee.
Elsewhere, gold is skyrocketing above $1,900/per ounce, continuing the two-month upside rally. WTI crude oil is unchanged, holding near $65.84/per barrel, while a jump above $67.96/per barrel could drive a move towards $70.00/per barrel.
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