News

NZ Dollar Strengthens on Inflation Data; Yen Slips post BOJ Meeting

NZD

The New Zealand Dollar gained against peers following inflation data. The data showed that the fourth quarter Consumer Price Index YoY rose 1.9% versus an expectation of 1.8%. The NZDUSD rose to a one-week high of $0.6793, and the EURNZD dropped to a low of 1.6732.

JPY     

The Japanese Yen weakened after the Bank of Japan monetary policy meeting. The bank left its monetary policy unchanged but lowered its inflation forecast for fiscal year 2019/20 from 1.4% to 0.9%, citing lower oil prices. However, the bank raised growth forecasts to 0.9% from 0.8%. The USDJPY jumped to a high of 109.78, and the NZDJPY advanced to a four-week high of 74.49.  

GBP

The British pound continued higher against rivals following the strong jobs report. The report revealed that the Average Earnings Index + Bonus rose to 3.4%, the highest since 2010. Moreover, the unemployment rate fell to 4.0% from 4.1%. However, the sterling will remain vulnerable to Brexit developments. The GBPUSD traded at a high of $1.2975, and the GBPJPY climbed to a one-month high of 142.29.

Metals

Gold prices gained almost 0.4%, supported by higher market risks and uncertainty. The gold ounce traded at a high of $1285, the silver ounce rose to $15.41, and Palladium held steady near $1360.

Oil

Oil prices drifted lower, weighed down by growth concerns. The downgrade of the economic outlook and growth figures by the IMF pressured oil prices. The West Texas Intermediate crude futures dropped to a low of $52.03, and Brent futures tumbled to $60.51. The American Petroleum Institute will report the weekly US crude oil stock later today.

Major Economic Events

GMT Country Event Expectation Previous
11:00 UK CBI Industrial Trends Orders (Jan) 5 8
13:30 CA Core Retail Sales (MoM) (Nov) -0.4% 0.0%
21:30 US API Weekly Crude Oil Stock   -0.560

 
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