Article Highlights

  • New Zealand Feb trade surplus at 50 million NZD vs. 375 million NZD forecast
  • New Zealand Jan trade surplus downgraded from 56 million NZD to 33 million NZD
  • Japanese Finance Minister: Not worried about hyperinflation in the country
  • Japan’s services producers price index down from 3.5% to 3.3% in Feb
  • Swiss UBS consumption indicator and German Ifo business climate index due
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It looks like the dollar pairs are having trouble getting through the Hump Day this week! Consolidation is the name of the game for the majors so far, with EUR/USD stalling below the 1.1000 handle (-0.07%) and USD/CHF trying to hold on to .9600 (+0.14%).

The Kiwi is having a bit of a rough day, after New Zealand printed a bleak trade balance report. The February trade surplus came in at 50 million NZD, way short of the 375 million NZD forecast, while the previous month’s reading was downgraded from an initially reported 56 million NZD surplus to just 33 million NZD. Components of the report revealed that a large drop in dairy shipments was the main culprit for the disappointing readings.

NZD/USD managed to hold steady around the .7650 minor psychological level for now (-0.05%) while NZD/JPY is down 15 pips (-0.19%). EUR/NZD popped higher by 36 pips close to the 1.4300 handle (+0.25%) and GBP/NZD is enjoying a 54-pip gain (+0.28%) so far.

In Japan, a leading index of consumer inflation hinted at further price declines, as the services producers price index slumped from 3.5% to 3.3% in February. Meanwhile, Japan’s Finance Minister Aso mentioned in parliament that he isn’t really worried about hyperinflation in the country. Yeah, no kidding…

The yen is trading slightly higher against its forex counterparts though, as USD/JPY is down 18 pips (-0.15%), EUR/JPY is lower by 8 pips (-0.09%), and GBP/JPY is flat at 178.00.

Moving on, the forex calendar shows that there are a couple of potential market-movers lined up for the London trading session. Switzerland is gearing up to print its UBS consumption indicator at 8:00 am GMT, with an improvement from the previous 1.24 reading likely to spur more franc gains. Germany is set to release its Ifo business climate report later on and a climb from 106.8 to 107.4 is expected.

U.S. Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

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