RBNZ's Bascand: Asked banks to be ready by end of year for negative rates

Dhwani Mehta FXStreet

We have asked banks to be ready for negative rates by year-end, said the Reserve Bank of New Zealand (RBNZ) Deputy Governor Geoff Bascand, speaking alongside Governor Adrian Orr at the press conference.

Orr continues to speak, now noting that “the next 12-plus months are going to be very tough for the global economy.”

More comments

"Do not have any influence over the level of the NZ$."

"Not looking for a "V" shaped recovery, recovery will take a long period."

"There are limits to negative rates, hard to know in advance."

NZD/USD eyes 0.6000

The kiwi is accelerating its decline and looks to test the 0.6000 support as the option of negative interest rates seems well on the cards for the central bank.

At the press time, NZD/USD trades at 0.6020, down 0.82% so far.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD recovers above 1.1600 as focus shifts to US NFP

EUR/USD recovers ground above 1.1600 in Friday's European trading. The pair's uptick is sponsored by a profit-taking pullback in the US Dollar, as traders reposition ahead of the critical US Nonfarm Payrolls data. Meanwhile, the Middle East conflict and higher oil prices could keep the recovery in check.

GBP/USD rebounds toward 1.3400 in countdown to US NFP

GBP/USD is rebounding toward 1.3400 in the European session on Friday. A modest improvement in risk sentiment and a broad-based US Dollar retreat help the pair recover its weekly losses. The focus now remains on the US NFP data and Middle East headlines for fresh trading incentives.

Gold advances on increased safe-haven demand

Gold price recovers its recent losses from the previous session. The yellow metal advances as the broader precious metals market rebounds on safe-haven demand. However, the yellow metal is on track for its first weekly decline in five weeks as escalating Middle East tensions push oil prices higher, fueling inflation concerns and reducing bets on Federal Reserve rate cuts.

Bitcoin, Ethereum and Ripple at risk as US-Iran war extends

Bitcoin, Ethereum, and Ripple trade cautiously at press time on Friday, close to key support levels after a roughly 2% pullback the previous day. Bitcoin holds above $71,000, Ethereum at $2,000, and XRP continues to consolidate in a sideways range.

The market compass is pointing at a barrel of Oil

The Asian open is arriving with equities leaning the wrong way, and the reason is not complicated. The market’s compass needle has snapped firmly toward crude. In this tape, oil is not just another input price; it is the gravitational center around which every asset class is orbiting.