RBNZ’s first stress test suggests life insurers can overcome severe economic, geopolitical shocks

Anil Panchal FXStreet

Early Tuesday in Asia, the Reserve Bank of New Zealand (RBNZ) unveils the results of its first stress test for the life insurance industry while suggesting that the major players are well-placed to overcome the severe economic and insurance shocks, while continuing to pay out on policy claims, reported Reuters.

Following the official announcement, RBNZ Deputy Governor Christian Hawkesby said that the participating insurers were able to pay out substantial claims from policyholders and remain solvent during a hypothetical three-year scenario comprising a long COVID, a new pandemic and a period of severe economic stress.

NZD/USD stays unimpressive

Despite the price-positive news and the US Dollar’s failure to defend the week-start gains, the NZD/USD remains sluggish near 0.6100 by the press time as it challenges the two-day rebound amid Tuesday’s early Asian session. The reason could be linked to the market’s cautious mood ahead of China's trade balance.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD rebounds from session lows, stays below 1.1650

EUR/USD is recovers modestly from session lows but remains in the red below 1.1650 in European trading on Thursday. The pair faces headwinds from a renewed uptick in the US Dollar amid a negative shift in risk sentiment. Surging energy prices due to the Middle East war keep the bearish pressure intact on the Euro. The US Jobless Claims data are next of note.

GBP/USD stays weak near 1.3350 amid UK stagflation risks

GBP/USD sticks to losses near 1.3350 in the European session on Thursday. The Pound Sterling loses ground amid fears that the United Kingdom economy could face stagflation risks due to higher energy prices, while the US Dollar attracts fresh havem demand ahead of the US Jobless Claims data.

Gold climbs near $5,200 as Iran war fuels safe-haven demand

Gold price extends its gains for the second successive session on Thursday as traders seek safety amid the ongoing war in the Middle East. US and Israeli strikes across Iranian territory and widespread Iranian missile and drone retaliation across the Middle East, including attacks on regional targets and military sites, prolong the crisis and its impact.

Three reasons to be bearish on Bitcoin

Bitcoin is holding up well taking into account the uncertainty stemming from the Middle East. Despite this week’s rally, the long-term outlook remains bearish. Here are three reasons why I think the storm for the largest cryptocurrency isn't over yet.

Markets attempt to rally on positive news from Iran

There’s been an abrupt change in sentiment this morning, European stock markets are higher and oil and gas prices are moderating, after comments from Iran’s deputy minister about pre-conflict talks between Iran and the US.

Cardano Price Analysis: Approaches key trendline amid bearish sentiment

Cardano (ADA) price is approaching its descending trendline around $0.28 at the time of writing, set to shape the next directional move. The derivatives metrics paint a bearish picture, with ADA’s Open Interest continuing to fall and short bets rising among traders.