HiFX Morning Update, March 16 2017

HiFX Morning Update, March 16 2017

The NZDUSD opens at 0.7004 (mid-rate) this morning.

The Kiwi has rallied 40+ points immediately following the Fed Rate hike, which is up 70+ points or over 1% from yesterday’s open.

The U.S. Fed has raised rates for only the third time in a decade by 0.25% to 0.75% as widely expected.

The key headline points are:

9 of the 17 Fed Policymakers see 3 rate hikes in 2017 (2 more to come)
Sees slightly faster pace of interest rate hikes in 2019, views for 2018, longer-run unchanged
Expects economic conditions will evolve in way that warrants "Gradual increases" in Fed funds rate; previously signalled "Only gradual increases"
Fed vote in favour of policy was 9-1; Kashkari dissented because he did not want to raise rates
Business fixed investment appears to have firmed somewhat
Inflation moving close to target; committee expects it will "Stabilize around" 2% over medium term
Will carefully monitor inflation developments relative to its symmetric inflation goal
Slightly lowers view of longer-run jobless rate to 4.7% from 4.8%
Fed repeats near-term risks to the economy appear "Roughly balanced"
Fed repeats that job gains remain solid; says jobless rate little changed in recent months
Fed repeats it will reinvest principal payments from its holdings until rate normalization is well under way

Global equity markets are higher overnight: Dow +0.17%, S&P +0.23%, FTSE +0.15%, DAX +0.18%, CAC +0.23%, Nikkei -0.16%, Shanghai +0.08%.

Gold prices are up $9 or 0.7% currently trading at $1,212 an ounce, WTI Crude Oil is up 2.0% currently trading at $48.47 a barrel.

ends

© Scoop Media