RBNZ governor Orr: Want the OCR unambiguously above neutral

Ross J Burland FXStreet

The Reserve Bank of New Zealand's governor Adrian Orr is crossing the wires and has said that he wants the OCR unambiguously above neutral.

Key comments

Domestic demand is running too fast.
Labour resources are acutely scarce.
Rate signals have been well received by the market

Meanwhile, the Reserve Bank lifted the official cash rate by 50 basis points to 3% this week noting in its monetary policy statement that its monetary policy committee had discussed whether “more rapid increases could improve the credibility” of its inflation targeting. The NZ dollar had been strong on the back of the move but the US dollar has rallied as hawkish narratives have been ushered in again by Federal Reserve speakers.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD pops to yearly highs near 1.1770

EUR/USD rapidly reverses course and hits fresh YTD tops near 1.1780 at the end of the week. The pair’s U-turn comes on the back of the intense sell-off in the Greenback amid the generalised risk-on context.

GBP/USD climbs to four-month tops near 1.3600

GBP/USD is building on its solid weekly advance and is pushing toward the 1.3600 hurdle on Friday, or new four-month peaks. Cable’s strong move higher comes as the Greenback intensifies its decline, while auspicious results on the UK calendar also collaborate with the uptrend.

Gold picks up pace, approaches $5,000

Gold prices keep their uptrend well in place and gear up for an imminent hit to the key $5,000 mark per troy ounce on Friday. The yellow metal’s sharp advance gathers pace amid the increasing weakness in the US Dollar and mixed US Treasury yields across the curve.