Forex Analysis for Thursday 9th February 2017
RBNZ maintained the OCR at 1.75%, in line with expectations. RBNZ said that the NZD remains higher than sustainable for balanced growth and a decline in the exchange rate is needed. There were also later comments from RBNZ Governor Wheeler that removed an easing bias in favour of a neutral bias and that the OCR is likely to stay low, while Assistant Governor McDermott stated he is uncomfortable with the NZD level and that they are to ensure 2% inflation before increasing rates.
The USD remains trapped within the support zone and the EUR index drops to short-term support intra-day before rallying somewhat. The GBP continues to rise and the JPY to consolidate. The NZD weakens despite the RBNZ signalling rate reductions were over. Oil pulls up off the 50MA but the Japan 225 seems stuck at its 50MA. The UK FTSE250 closes at an all-time high.
The financial media is light.
The UK Government passed the Article 50 legislation without amendment and by a very large majority.
Today is another light day in the financial calendar.
VIP Club members please [mepr-login-link] to access your Daily Alert video.
For VIP Club members, this commentary is augmented with a short daily video where I discuss the trades I am in and the opportunities for tomorrow. If you would like a free one month trial to the VIP Club you can find out more HERE.
Here is your Daily Alert video. Trade talk starts at 5:35.
You can download the video HERE. If it starts to play in your browser, right click on it and select “save video as” or similar and it will download to your machine.
There is an archive of all VIP Club member’s content on the VIP Club page.