Daily Alert: Thursday 11th May 2017

Mark NugentDaily Alert, May 2017

Forex Analysis for Thursday 11th May 2017

Economic Calendar

Wednesday: RBNZ kept Official Cash Rate unchanged at 1.75% as unanimously expected. RBNZ stated that accommodative policy will remain for considerable period, while the bank added that numerous uncertainties remain and policy may need to adjust accordingly. (Newswires)

RBNZ Governor Wheeler stated the central bank is neutral on monetary policy and expect OCR to remain 1.75% for the foreseeable future, while he added that inflation expectations would need to increase for a hike in OCR. (Newswires)

RBNZ Assistant Governor McDermott stated that underlying inflation pressure is same today as it was in February and added he is not unhappy about the decline in NZD from the rate decision. (Newswires)

Crude oil inventories in the US saw a bigger drawdown than expected (-5.2M vs -2.0M).

Market Reaction

Wednesday was definitely more risk-on with the USD up, all US equity indices up and European and Japanese equity indices following suit. Oil rose on the drawdown miss referred to above and gold dropped. The JPY weakened, AUD consolidated and the NZD dropped on what was seen as a more dovish than expected RBNZ comments after the rate announcement.

News Media

Nothing of note.

Today’s Calendar

GBP BoE Super Thursday.

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