RBNZ with a big surprise, CPI data in focus today

Frank Walbaum FX Strategies.Asia

Important news for the day:

Wed, 14th, 04:00 CET NZ Interest rate decision.
Wed, 14th, 14:30 CET US core consumer prices index.

US rate decision

Investors should get more clarity with fresh consumer prices index data from the US today. It is expected that the data will rise slightly today. However, recent words from Jerome Powell pointing out that a rate decrease might follow in September. Currently employment data shows that economic activity is currently falling. Comments from Fed member Raphael Bostic, however, state that still more incoming data would be needed before the Fed should act.

Market talk

Before the consumer price data today the USD has been losing more steam as traders anticipate the news this afternoon. Early this morning the Royal Bank of New Zealand had already started to reduce rates. This was not expected. The move sparked negative momentum in the Kiwi, which lost sharp momentum against other currencies. It was previously expected that the RBNZ will cut rates much later this year.

Tendencies in the markets

Equities positive, USD weak, cryptos positive, oil at resistance, metals positive, JPY weaker.

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

XRP struggles around $1.40 despite institutional inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.