Collinson FX: May 23: RBNZ holds the line on OCR and triggers NZD rally
by Collinson FX 23 May 2024 09:34 AEST
23 May 2024
WASZPs racing in the SailGP Inspire program - Lyttelton - March 23, 2024 © Justin Mitchell
May 23: RBNZ holds the line on OCR and NZD rallies
UK inflation numbers tumbled, from 3.2% to 2.3%, but remained higher than expected. This was enough to push bond yields higher and the GBP, as market analysts now defer the probable interest rate cuts from the Bank of England, until later in the year. The initial surge in the currency was reversed, when the Fed Minutes confirmed similar circumstances, with ‘persistent inflation’ even suggesting further rate hikes, before any US interest rate cuts, would come from the Fed. This was met with a surge in US Bond Yields and the US Dollar. The GBP beat a hasty retreat, back to 1.2700, while the EUR fell back to 1.0800.
The RBNZ was also hawkish, citing inflationary pressures, in their latest decision to leave interest rates at these elevated levels, until at least next year. The had the same impact on the currency, with the NZD rallying strongly following the RBNZ rate decision, only to fall flat following the release of the Fed minutes. The NZD settled back below 0.6100, while the AUD retreated back towards 0.6600. The persistent inflationary pressures look set to continue, despite enormous political and economic pressures, for cuts. Inflation remains the key driver in currency markets.
For the latest and recent market commentaries from Collinson & Co see collinsonco.com/news-updates
Catch the new look Collinson FX website at www.collinsonco.com
Disclaimer: The details expressed in the Collinson FX website and accompanying documents or transmissions are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Collinson Forex Ltd accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the information contained or related to this site
Collinson Forex offers valuable insights and solutions to boat enthusiasts and industry professionals alike. They offer a range of tailored currency services, designed to support individuals and businesses involved in the marine sector, facilitating seamless international transactions and optimizing financial operations. Founded in 1994, Collinson Forex is a trusted financial partner within the marine community. collinsonco.com/business-forex
Collinson Crowdfunding provides innovative equity crowdfunding services, aiming to connect businesses looking to raise capital with investors who are looking for new opportunities. They do this by offering a website for companies to make share offers and support to streamline the offer process. For investors, Collinson Crowdfunding offers a simple way to invest in exciting businesses. collinsonco.com/crowdfunding
Contact Collinson on 0800 338 838