HiFX Morning Update, November 30, 2017

HiFX Morning Update, November 30, 2017

The NZDUSD opens at 0.6891 (mid-rate) this morning.

The NZD drifted lower following the release of the RBNZ financial stability report, those hoping for a road map outlining the full removal of the LVR’s were left disappointed after RBNZ announced a modest easing of the LVR restrictions, from 1 January 2018, with the bank to monitor the impact of these changes before making further adjustments.

The British pound is again the strongest performing G10 currency after rumours that a preliminary agreement on a divorce settlement were confirmed. The financial settlement is the first of three areas which need to be agreed, with the rights of EU citizens in the UK after Brexit, and how to avoid a hard border between Northern Ireland and the Irish Republic, the other two key matters to be negotiated.

The USD received a boost after the Commerce Department reported Q3 gross domestic product surged up by an upwardly revised 3.3% from the previously reported 3.0% rise. The final reading had been forecast to increase to 3.2%.

Euro-zone economic confidence continues to improve, with the index reading for the month of November reaching a 17 year high of 114.6 following a 114.1 result in October.

Global equity markets are mixed - Dow +0.22%, S&P 500 -0.24%, FTSE -0.90%, DAX +0.02%, CAC +0.14%, Nikkei +0.49%, Shanghai +0.13%.

Gold prices are down 0.8% currently trading at $1,295 an ounce. WTI Crude Oil prices continue to slide, down 0.8%, trading at $57.37 a barrel.

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