The NZDUSD opens at 0.6785 (mid-rate) this morning.
Global equity markets are in positive territory as risk-sentiment improves after EU leaders backed the UK's Brexit divorce agreement and comments from Italian Deputy Prime Minister Luigi Di Maio suggesting that the government may look reducing their forecast deficit for 2019.
In response to the European Commission who have requested that the Italian government revise their 2019 budget deficit Deputy Prime Minister Luigi Di Maio said "if, during the negotiating process, the deficit has to be reduced a bit, that's not a big deal.” Overnight Italian media reported that the deficit could be cut to 2.0% - 2.2% from the current proposal of 2.4%.
Eurozone heads backed the UK’s Brexit withdrawal agreement with the President of the European Commission Jean-Claude Juncker describing the agreement as “the best possible deal.” Over the next 2-3 weeks UK PM Theresa May will attempt to convince at least 89 Conservative MP’s who have indicated they intend to vote down the deal that this is the only way to move forward and that there was no possibility of renegotiating a new deal should parliament reject it.
Crude oil prices are rebounding after Friday’s 6% fall with WTI crude currently up 2.5% although uncertainty over global economic growth continues to limit gains.
Global equity markets with the Shanghai Composite the only exception have turned positive, - Dow -+1.12%, S&P 500 +1.17%, FTSE +1.20%, DAX +1.45%, CAC +0.97%, Nikkei +0.76%, Shanghai -0.14%.
Gold prices are unchanged trading at $1,222 an ounce. WTI Crude Oil prices have started the week on the front foot,, currently up 2.5% trading at $51.86 a barrel
Current indicative rates:
| NZDUSD | 0.6785 | 0.1% |
| NZDEUR | 0.5987 | 0.1% |
| NZDGBP | 0.5295 | 0.2% |
| NZDJPY | 77.06 | 0.6% |
| NZDAUD | 0.9387 | 0.1% |
| NZDCAD | 0.8987 | 0.1% |
| GBPNZD | 1.8886 | -0.2% |
Upcoming Data releases (NZST):
- 10:45 - Trade Balance
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Dan Bell is the senior currency strategist at xe money transfer in Auckland. You can contact him here »
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