RBNZ cut rates to a record low of 1%

In the early hours of this morning we saw the Reserve Bank of New Zealand slash their interest rates to a record low of 1% and the pound is still under its usual Brexit related pressure.

Previous Day's Market Highlights

  • Yesterday was a very quiet day in the markets, a lack of volatility was caused by a quiet data release worldwide.
  • With ongoing political tensions being the main cause of conversation across the pond and at home.
  • The Pound is still under its usual Brexit related pressure, with reports coming through that the European Union appears to be operating on a “working hypothesis of a no-deal” after accepting Boris Johnson’s stance of a No Deal exit taking place on Halloween this year. This pressure has also been added by a senior EU diplomat having been quoted as saying “a No Deal Brexit appears to be the UK government’s central scenario”.
  • The US/China Trade war is yet again the focus across the pond and in Asia. The latest update comes from President Trump’s claim that China is manipulating their currency after we saw a 1.28% drop in the CNY over the USD.
  • However, in the early hours of this morning, we saw the Reserve Bank of New Zealand slash their interest rates to a record low of 1%. This comes off the back of a slowing economy which is preventing inflation from returning to the central bank’s goal. RBNZ Governor Orr signaled that further easing is a possibility with the US and China trade war taking an effect on their own and the other antipodean economy, Australia who we saw cut their rate to 1% last month. We saw the NZD drop 2.26% against the Pound throughout the course of this morning.
Currency Pairing 08:00 Today Vs 08:00 Yesterday Four-Week High Four-Week Low % Change
GBP/EUR 1.0874 1.1246 1.0811 3.30%
GBP/USD 1.2161 1.2578 1.2079 3.97%
EUR/USD 1.1206 1.1285 1.1026 2.30%
GBP/AUD 1.8128 1.8128 1.7560 3.13%
GBP/NZD 1.9000 1.9000 1.8278 3.80%
GBP/CAD 1.6180 1.6438 1.5959 2.91%

Today's Market Highlights

A very quiet day ahead today, with a speech from FOMC member Evans at a media event in Chicago and later this evening RBA Assistant Governor Bullock will be speaking at a business breakfast which may provide some rhetoric for further interest rate decisions in Australia. Traders will be anticipating a big day for data release on Friday which will see manufacturing and GDP data from the UK and employment data from Canada.

Today's Economic Calendar

Time Currency Release Consensus Previous
2:30pm USD FOMC Member Evans Speaks
10:30pm AUD RBA Assist Gov Bullock Speaks