Forex Today: Kiwi dumped on dovish RBNZ, UK data, Bank of England Super Thursday eyed
Despite risk-on markets profile seen across Asia this Thursday, the Yen bulls managed to hold ground near 109.70 against its American counterpart, having shrugged-off the Bank of Japan (BoJ) Summary of Opinions and Kuroda’s comments. The Aussie traded with minor gains amid broad-based US dollar retreat while benefiting from rising oil prices. However, further gains remained capped following the release of downbeat Chinese inflation numbers. Meanwhile, the Kiwi emerged the weakest among the Asia-pac currencies and hit fresh five-month lows just ahead of 0.6900 levels on dovish Reserve Bank of New Zealand’s (RBNZ) monetary policy decision.
Main topics in Asia
RBNZ leaves interest rate unchanged at 1.75%, inflation expected to remain below 2%
The Reserve Bank of New Zealand (RBNZ) has left the official cash rate unchanged at 1.75% following their latest rate decision. New Zealand's interest rate has remained unchanged since November of 2016.
RBNZ press conference sees Orr ready to hold on rates for "an extended period of time"
The Reserve Bank of New Zealand (RBNZ) and its Governor, Adrian Orr, held a press conference following their rate statement earlier.
BOJ Summary of opinions: Must maintain powerful easing
The Bank of Japan (BOJ) is nowhere close to the 2 percent inflation target and hence must maintain powerful easing, the BOJ summary of opinions released today showed.
China's April inflation: Downbeat across all indicators
According to the latest data published by China’s the National Bureau of Statistics (NBS), the Chinese Consumer Price Index (MoM) (April) came in at -0.2% vs -0.1% exp and -1.1% last, while Consumer Price Index (YoY) (April) was 1.8% vs 1.9% exp and 2.1% last.
RBNZ's Orr: Exchange rate has been very well behaved
The Reserve Bank of New Zealand (RBNZ) Governor Orr, while testifying on the Monetary Policy Statement before the Finance and Expenditure Select Parliamentary Committee, in Wellington, said the New Zealand dollar exchange rate …
China Commerce Ministry: China's stance in trade talks will not change
Comments from China's Commerce Ministry are flowing-in via Reuters …
Oil benchmarks hit fresh 3.5 year highs
Oil prices continue to set fresh multi-year highs as investors digest the possibility of fresh US sanctions against Iran and faster tightening of the oil markets.
BoJ’s Kuroda: Momentum for achieving 2% inflation is sustained
More comments flowing in from the Bank of Japan (BoJ) Governor, as he continues to reiterate his stance on the economic and inflation outlook.
BoJ’s Kuroda: Not appropriate to talk about conditions for exit now
The Bank of Japan (BoJ) Governor Kuroda is on the wires again, via Reuters, this time speaking on the easy policy exit strategy.
Key Focus ahead
The French, Swiss and German markets are closed today in observance of Ascension Day, leaving the focus on the UK docket, with a slew of macro news slated for release all at once at 0830 GMT. The UK industrial and manufacturing production data will be reported alongside the goods trade balance and construction output figures.
However, the main event risk for the GBP markets today remain the Bank of England (BOE) Super Thursday events, with the rate decision accompanied by the monetary policy minutes and quarter inflation report (QIR) release.
Also, of relevance remains the US inflation report, with the CPIs on the cards along with the usual weekly jobless claims while the Federal Budget balance will be reported at 1800 GMT.
EUR/USD lacking confidence, unlikely to find any big moves with US inflation in the barrel
European markets are going to be a slow affair for Thursday with Germany, Switzerland, and France off for Ascension day. The European Central Bank's (ECB) Economic Bulletin drops at 08:00 GMT, and will go over the previous governing council meeting held two weeks ago.
GBP/USD: Delay in Bank of England rate hike priced-in?
Most economists polled by Reuters expect the Bank of England (BOE) to vote 7-2 to keep rates unchanged today and expect a rate hike in August. A month ago, a 25 basis point rate hike in May looked like a done deal.
Bank of England expected to hold off on rate hike - Reuters
The Bank of England (BoE) is widely expected to hold off on a rate increase for today's rate call, as the UK's central bank has had to walk back their hawkish tone recently in the aftermath of a wave of disappointing economic figures.
Preview for the key US CPI data - Nomura
Analysts at Nomura offered a preview for the key US CPI data coming up.
Not to overcomplicate issues, after the recent wave of USD buying, profit taking has set in ahead of Thursdays Key CPI prints which will arguably be the most critical data release for the month.
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