HiFX Morning Update, April 3 2017

HiFX Morning Update, April 3 2017

The NZDUSD opens at 0.7005 (mid-rate) this morning.

Markets traded in an orderly fashion during Fridays close to the quarter, with the British pound the standout performer as it continued to rise post “Brexit.”

There was little reaction in currency markets to a plethora of economic data releases on Friday with the US reports delivering mixed messages to the market while the GBP benefited from a stronger-than-expected current account and the EUR came under pressure following disappointing inflation data.

The UK's current account deficit fell sharply in the final quarter of 2016 with Friday’s report showing a deficit of GBP12.1B in Q4 representing a narrowing of GBP13.6B from the GBP25.7B in Q3.

Euro-zone inflation for the month of March fell more than expected with the flash data report from Eurostat showing inflation at 1.5% after recording 2% for the month of February. Economists had expected the rate to dip to 1.8%.

The key domestic data releases for the NZD this week are tomorrows NZIER business confidence report and Wednesday mornings’ Global dairy trade auction. On the international front Thursday morning’s FOMC minutes and Friday nights' US employment reports look to be the highlights

Global equity markets were mixed on Friday having made solid gains on the quarter. - Dow -0.31%, S&P 500 -0.22%, FTSE -0.63%, DAX +0.46%, CAC +0.65%, Nikkei -0.81%, Shanghai +0.38%.

Gold prices closed on Friday at $1,248 an ounce for a quarterly gain of 8% WTI Crude Oil edged higher on Friday closing out the week at $50.60 a barrel. On the quarter prices were down 5.8%

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