Mar 09


  • BY: Donal Kelly
  • March, 09th, 2016 20:38 +00:00

Good evening,

the Reserve Bank of New Zealand made an unexpected rate cut of 25bp to 2.25% with the consequence that the Kiwi dollar is the worst performer in the major group pf currencies.  NzdUsd is trading at 0.6650 (-1.37%), down 92 pips.  The Bank of Canada kept interest rates at 0.5% and the Loonie dollar is gaining ground, with a +1.2% gain on the Greenback. EurUsd is trading flat at 1.1007 , but volatility on the most traded pair will come back tomorrow when the ECB will decide the interest rate level and will release a Policy Statement as well. Probably the most relevant event will be Mario Draghi press conference as rates are likely to stay unchanged.

US indices are off their intraday highs but keep small gains and Crude Oil at 38.12 $/barrel (+4.44%) soared after a small retracement triggered by profit taking. Gold is losing 9.2$ at 1,253.7 $/oz (-0.73%), as the shiny metal is still negative correlated with stocks.

Chinese CPI data at 02:00 GMT will be the most relevant event of the Asian session and the European session will kick off with UK Trade Balance at 09:30 GMT.

(20:30 GMT)