Frank Walbaum
FX Strategies.Asia
Important news for the day:
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Wed, 14th, 04:00 CET NZ Interest rate decision.
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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
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Equities positive, USD weak, cryptos positive, oil at resistance, metals positive, JPY weaker.
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