By Dan Bell
The NZD/USD is currently trading around 0.7540 this morning after making a high of 0.7570 overnight.
European stocks saw massive gains with the German DAX up 4.6%, and Spain’s main index up 5.46%! US markets are still open and are currently up 3%.
Commodity prices are up across the board with the CRB Index up 0.65%.
The AUD has been one of the best performing currencies overnight and has traded to a high just under parity. The EUR/USD also had a good night trading just under 1.34.
The IMF denied yesterday’s rumour that they are looking at structuring a 600 billion loan to Italy.
Recent price action suggests liquidity is very thin at the moment which is adding to volatility- as we get closer to Christmas, and into the first few weeks of the New Year, markets will get even less liquid which can make for extreme moves during this period.
The NZD is firmer against most cross rates and opens around 0.5650 EUR, 0.4850 GBP, 0.7620 AUD and 58.80 JPY.
Nothing to report from New Zealand today.
Offshore, EU finance Ministers area meeting in Brussels tonight to approve arrangements for scaling up the European Financial Stability Facility.
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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