No tier one data releases kept the currency markets quiet yesterday. The Pound against the US dollar and the euro remained within a tight range bound with little movement to either side.
Following on from the Reserve Bank of New Zealand’s 50 basis point interest rate cut to a fresh record low of 1%, RBNZ Governor Orr stated that the possibility for further rate cuts, reaching a negative interest rate in the future due to ongoing uncertainty, was a potential outcome with the current political state of uncertainty.
The Central Banks of both India and Thailand have also cut interest rates, highlighting the overall negative outlook for the global economy.
Trade concerns between the US and China are still looming over markets, falling government bond yields demonstrating the overhanging fear for investors, including the yield on the German 10 year and 30 year bunds, as well as the UK 10 year and 30 year bonds all hit record lows yesterday.
Vs 08:00 Yesterday
Today's Market Highlights
A very quiet day again today, the only major release is the US Weekly Jobless claims, expected at 215k however this is unlikely to have a real impact on the markets.