HiFX Morning Update, November 8 2016

HiFX Morning Update, November 8 2016

NZDUSD 0.7322 0.0%
NZDEUR 0.6634 0.8%
NZDGBP 0.5908 0.7%
NZDJPY 76.57 1.2%
NZDAUD 0.9488 -0.6%
NZDCAD 0.9787 -0.3%

The NZDUSD opens at 0.7322 (mid-rate) this morning.

Global sentiment turned positive yesterday after the FBI said it stood by a recommendation that no criminal charges were warranted against Hillary Clinton. This shift in sentiment has seen the NZD push higher against the JPY, GBP and EUR and hold its own against the USD.

America go to the polls today and given the market reaction over the past 24hrs should Clinton win we would expect the NZD to extend its gains against all the majors with the exception of the USD. A Trump victory which is now looking less likely, would create a risk off response with the NZD likely to fall against all the majors including the USD.

Yesterday’s upward revision of NZ’s Q3 CPI following on from sharp rises in dairy prices and continuing inflationary pressures in the housing sector has some economists now hedging their bets against an interest rate cut at Thursday mornings RBNZ meeting.

Global equity markets have surged higher - Dow +1.88%, S&P 500 +2.08%, FTSE +1.70%, DAX +1.93%, CAC +1.91%, Nikkei +1.61%, Shanghai +0.26%.

Gold prices are down 1.8% currently trading at $1,280 an ounce WTI Crude Oil has started the week on the front foot currently up 0.5% at $44.31 a barrel.

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