Morning View: Greece? Who are they? Got some bigger fish to fry this morning.
FOMC Member Williams Speaks
Overnight, the Fed’s John Williams argued his point for and earlier rate hike.
“The Federal Reserve hiking interest rates ‘a bit earlier’ allows the U.S. central bank to increase rates more gradually.”
In an interview with CNBC, Williams said that the US job market has shown momentum for the rest of the year and shared his belief that inflation would continue to rise.
Of course the ‘data dependent’ line came out at the end but there’s a bit of an insight anyway.
RBNZ Financial Stability Report
The other major news release came out of the New Zealand this morning, causing NZD/USD to whipsaw.
Price fell hard then violently rose after headlines from the RBNZ Financial Stability report. The RBNZ tightened lending limits to slow the overheating housing market but then said that the NZD was above sustainable levels. They key was their failure to include the word “unjustified” when describing the value of the NZD.
NZD/USD 4 Hourly:
Chop city but there are plenty of shorts from that trend line break we have been watching on Twitter that will look to be getting out now. The greater risk of a move is to the upside from here.
On the Calendar Today:
Packed economic calendar today and tonight with some huge tier 1 releases. The Australian wage data shouldn’t have much of an effect on the Aussie with tier one Chinese Industrial Production data only a few hours later.
Heading into London, we have a whole raft of GBP sensitive news. With the markets still digesting Cameron’s election win, it will be interesting to see what Carney and the BoE have to say.
We round out a busy night of data with USD Retail Sales.
Wednesday:
AUD Wage Price Index
CNY Industrial Production
EUR German Prelim GDP
GBP Average Earnings Index
GBP Claimant Count Change
GBP BOE Gov Carney Speaks
GBP BOE Inflation Report
USD Core Retail Sales
USD Retail Sales
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