The Reserve Bank of New Zealand surprised analysts by cutting its key interest rate by 0.25% to 5.25%.
➡️ At the Reserve Bank of New Zealand's policy meeting today, the bank surprised the market by cutting its official exchange rate by 0.25% to 5.25%, sending the Kiwi lower.. Governor Orr said a 0.50% cut was being considered and that the bank is confident that inflation is firmly within its target range, so interest rate normalization can begin.
➡️ In the Forex market, the RBNZ rate cut sent the Kiwi lower, making it the weakest major currency since Tokyo opened today, while the Euro is the strongest major currency. The EUR/USD currency pair is in focus today after finally making a bullish breakout yesterday to test the large round number and long-term resistance area at $ 1.1000. Trend traders will be interested in going long on this currency pair.
➡️ Stock markets continued to recover after a sharp sell-off early last week. However, the Asian session saw most index futures trading sideways.The essential theme in the market today is basically weak risk sentiment, but markets will be closely following today’s scheduled release of US CPI data and will likely take their next major direction from there.
➡️ US Consumer Price Index data is expected to remain steady at an annualized rate of 3.0%A lower or higher reading will likely cause a directional move in the US dollar and US stock markets.
➡️ UK CPI data, due today, is expected to show an increase in the annualised rate from 2.01TP3Q to 2.31TP3Q.
➡️ Gold came close to an all-time high yesterday before selling off in the final hours. Monday's New York close for gold was a record close, which will have led many trend traders to enter a new long position here. If the support level at $ 2.457 holds and produces a bounce, it could be a good signal to enter a long position.
➡️ US Producer Price Index (PPI) data released yesterday came in weaker than expected, rising just 0.11TP3Q on the month, suggesting easing inflationary pressure.
➡️ Data released yesterday on changes in the number of jobless claimants in the UK was much higher than expected.
Credit by DailyForex.com