HiFX Morning Update, September 14 2016

HiFX Morning Update, September 14 2016

NZDUSD 0.7245 -1.40%
NZDEUR 0.6459 -1.30%
NZDGBP 0.5491 -0.40%
NZDJPY 74.37 -0.70%
NZDAUD 0.9707 -0.10%
NZDCAD 0.9540 -0.50%

The NZD opens lower this morning down -1.4% at 0.7245

The USD was the big winner overnight even though future markets show expectations of a one-in-five chance of a September rate rise. As is often the case, the muddy lead up from Fed officials hasn’t clarified the outlook as they move into their self-imposed period of public silence before a policy meeting.

Inflation in the UK remains under target. CPI figures came in at 0.6%, the GBP dropped the most in five weeks against the USD, however holding well against the NZD and AUD as the market seems to be lightening up on risk.

Business morale failed to improve in Germany and the ECB mentioned that monetary policy is working, albeit by following new paths. A low interest environment can’t continue forever, at some point they will hit their lower limit. Time is needed for this to play out.

The International Energy agency warned that global demand was growing slower than previously thought dragging oil down -2.5% to 45.37, Gold is also lower at $1318.
Global equity markets followed the currencies down: - Dow -1.41%, S&P 500 -1.48%, FTSE -2.81%, DAX -2.70%, CAC -3.41%, Nikkei +0.34%, Shanghai +0.05%.

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