The NZDUSD opens slightly higher this morning at 0.7214 (mid-rate).
The UK General Election results are currently unfolding with polls closing at 9am NZT. Polls are predicting Theresa May and the Conservative’s to increase their majority in the House of Commons. The first exit polls will start hitting the wires between 10am and 11am NZT. The GBP is currently stronger verses the USD and EURO but losing ground against the resurgent Kiwi dollar. Expect more volatility during the day.
The EURO headed lower overnight after the European Central Bank lowered its inflation projections. It also held interest rates steady at 0.0% while at the same time, signalling that it would be unlikely to cut rates further. ECB President Draghi stated that they expected interest rates to “remain at present levels for an extended period of time”. In a further dovish statement, they stated that “If the outlook becomes less favourable or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation, the Governing Council stands ready to increase the programme in terms of size and/or duration,”
There was no new dramatic headlines coming from former FBI Director Comey’s much anticipated congressional hearing overnight. While there was no new evidence of collusion between Trump’s campaign team and Russian hackers looking to sway the US election, Trump’s lawyer has hit back claiming Comey has admitted being a leaker of classified information.
Oil prices continue to fall. Still reeling from the unexpected US inventories surge and more crude supply coming through from Nigeria, the WTI Crude price is down to 45.72 this morning.
Current indicative rates:
NZDUSD 0.7215 0.3%
NZDEUR 0.6432 0.7%
NZDGBP 0.5574 0.4%
NZDJPY 79.36 0.4%
NZDAUD 0.9556 0.3%
NZDCAD 0.9744 0.2%
GBPNZD 1.7930 0.3%
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