Market News

Kiwi bulls charged during the RBNZ decision as the central bank predicted that the economy would hit its inflation target earlier than previous expected and probably hike interest rates sooner, too.

The dollar slipped to a more than one-week low against the yen on Wednesday, pressured by worries over possible delays to President Donald Trump’s tax reform plans.

 “Major issues” must still be resolved on safeguarding citizens’ rights after Brexit, the European Parliament’s negotiator Guy Verhofstadt said on Wednesday, the eve of another round of divorce negotiations between London and Brussels.

The Canadian dollar strengthened against its U.S. counterpart on Wednesday, adding to its gains after comments by Bank of Canada Governor Stephen Poloz the day before which were less dovish than investors had expected.

GBP extended its losses during the morning London session. JPY, meanwhile, got bid higher across the board, very likely because of the risk-off vibes. As for NZD, it was also mostly higher ahead of the RBNZ statement.

Sterling slipped on Wednesday, with a string of scandals in the ruling Conservative party and evidence of growing doubts over Prime Minister Theresa May’s ability to deliver a good Brexit deal putting pressure on the pound.

The International Monetary Fund on Wednesday urged Japan to maintain its massive monetary stimulus to support struggling consumer prices, a view echoed by a central bank board member, reinforcing expectations policy will remain accommodative.

Protectionist sentiment has not yet gone beyond mere words, International Monetary Fund Managing Director Christine Lagarde said on Wednesday, but would hurt Asian economies with open and free markets if it did.

Oil prices fell on Wednesday as Chinese crude imports slipped to their lowest level in a year, although traders said the overall market remains well supported on the back of OPEC-led supply cuts.

The dollar was the biggest mover of the session as Asian session forex traders focused on tax-related updates and Trump’s upcoming speech in South Korea.

Republicans in the U.S. House of Representatives forged ahead on Tuesday with legislation to reshape the federal tax code, while a top credit-ratings agency said the bill would balloon the budget deficit.

The dollar slipped broadly on Wednesday, hurt by a media report that suggested the implementation of a centerpiece corporate tax cut under discussion in U.S. tax reforms plans could be delayed.

The U.S. dollar shrugged off upbeat medium-tier reports as traders were zoned in on Quarles’ speech and tax plan updates while the Kiwi tumbled on the third consecutive decline in GDT dairy prices.

Bank of Canada Governor Stephen Poloz defended the use of inflation targets on Tuesday and reiterated that policymakers will be cautious about future interest rate moves even as encouraging signs of wage growth show up.

EU diplomats will start sketching out a Brexit transition offer on Wednesday that would probably let Britain stay in the single market for about two years after it leaves the bloc in March 2019, EU officials said.

Oil eased on Tuesday, having posted its largest gain in six weeks the previous day, while tension flared between Saudi Arabia and Iran, just as the Saudi crown prince tightened his grip on power.

Global demand for OPEC’s crude will rise in the next two years more slowly than expected, the group forecast, as a recovery in prices resulting from an OPEC-led supply cut stimulates renewed output growth from non-members.

USD extended its gains from earlier. However, it lost out to CHF while barely winning out against against JPY. The commodities rout, meanwhile, took a heavy toll on all the comdolls.

As if this week’s roster central banker speeches aren’t enough, RBNZ will also publish its policy decision for November. Here’s what you need to know about the event.

German industrial production fell in September after surging a month earlier, but output still grew by 0.8 percent in the third quarter as a whole and should increase further in the months ahead, the Economy Ministry said.