Youtrading UK
Português Español русский
Register Login
  • Markets
  • Charts
  • Economic Calendar
  • World
  • Economy
  • Insights
  • About Us
No Result
View All Result
Youtrading UK
  • Markets
  • Charts
  • Economic Calendar
  • World
  • Economy
  • Insights
  • About Us
No Result
View All Result
Youtrading UK
No Result
View All Result

NZDUSD lower on a rate hike that was already priced in

by Neville Hornsey
24 November 2021
in Markets
0
NZDUSD lower on a rate hike that was already priced in
403
SHARES
9.4k
VIEWS
Share on FacebookShare on TwitterShare on WhatsApp

Market Brief

See real-time quotes provided by our partner.

Following a coordinated release of reserves by several countries, including China and the US, the market is currently focused on oil. As oil producers may reconsider plans to increase output at next week’s OPEC+ meeting, the oil price rose after analysts said the release was smaller than expected. The 35mln barrels of the proposed 50mln barrel SPR release are a loan, which will have to be repaid. The type of oil being released is also known as Sour, which is a heavy oil that is hard to refine. Total release from the USA would equal about 12 hours’ worth of global daily consumption, so it’s not a big deal when some analysts predict a supply deficit of around 1.2 million barrels per day. The Brent crude oil contract is currently trading at the swing high price level from October 2018 and is looking likely to pop out of this current descending channel to test the recent swing highs.

See real-time quotes provided by our partner.

In line with expectations, the Reserve Bank of New Zealand raised interest rates by 25bp to 0.75% for the second time this year. As a result of this decision, the Official Cash Rate (OCR) will rise to 0.75%. The RBNZ statement said that to maintain price stability and support maximum sustainable employment, the Committee agreed that monetary stimulus should be reduced.

The market had been thinking there could be a 50bps rate hike and judging by this morning’s reaction a lot of traders were disappointed only to get the 25bps. Currently the NZD is the weakest of the currencies in the forex heatmap, with the CAD benefitting from the rising oil prices. Today is likely to remain mixed in terms of risk-on/off, but the Kiwi is trading below a significant trend line and a close today below that level and we could be testing swing lows soon.

As accommodative policies and COVID-19 health restrictions have been relaxed, central banks are preparing to remove emergency stimulus as global economic activity continues to rise. While support is added, global supply-chain disruptions create a compounded effect because this mix creates both cost pressures and production constraints as money chases fewer goods at a time when demand remains high. To determine when central banks should reduce monetary policy stimulus, they need to distinguish between transitory price increases and underlying sustained inflation pressures.

See real-time quotes provided by our partner.

This morning, the CBI industrial trends for the UK and the German IFO business surveys for November will be watched for the latest indications of economic activity and price trends. A recent CBI survey indicated that prices are being forced upward significantly this year.

Traders will be watching the pound against the other major crosses as the BoE MPC members are quite active this week, with Tenreyro taking to the stage today. She is one of the most dovish MPC members. The GBPUSD continues to weaken as the BoE hasn’t yet convinced the markets that they will raise rates in December and the US dollar continues to trade at elevated levels.

See real-time quotes provided by our partner.

In the US session, the PCE deflator, which is the Fed’s preferred inflation indicator, is likely to follow the CPI data higher, with the annual rate for the headline inflation index expected to rise above 5%. Watch for signs of a slightly more hawkish tone in the minutes of the Fed’s November policy meeting. The Fed’s taper may be accelerated in the wake of recent strong data, possibly paving the way for a rate hike next year, which Powell did not explicitly rule out. I doubt that the monetary policy will change much faster than previously signalled as the RBNZ were obviously more cautious today. But if the FOMC minutes signal the committees intention to raise rates at the end of the taper I would imagine the short-term yields will continue to rise today along with the USDJPY.

Tags: BoEBrentCrude oilDXYFedFOMCGBPUSDNZDUSDUSDJPY
Previous Post

GER30 Technical Analysis – Looking below 16,000

Next Post

Stocks under pressure as European Covid-19 fears rage

Next Post
Stocks under pressure as European Covid-19 fears rage

Stocks under pressure as European Covid-19 fears rage

CALL US

Categories
  • Commodities
  • Economy
  • Forex
  • Index
  • Insights
  • Markets
  • Opening of the Week
  • Sem categoria
  • Stocks
  • World

Site Map

  • Home
  • Markets
  • Charts
  • Economic Calendar
  • World
  • Economy
  • Insights
  • About Us
Português Español русский

A comprehensive website for traders, both experienced and new! Checkout our content and learn how to invest and speculate in the markets using margin traded products. Our team of educators has extensive experience and is here to help. Enjoy!

Follow us on social media

Risk Warning

All financial products traded on margin carry a high degree of risk to your capital. They are not suited to all investors, please ensure that you fully understand the risks involved, and seek independent advice if necessary.

All Rights Reserved - YouTrading UK 2020

Privacy Policy and Terms and Conditions
  • Home
  • My Academy
    • Register Now
    • Login
  • Markets
    • Opening of the Week
    • Stocks
    • Commodities
    • Forex
    • Index
  • Charts
  • Economic Calendar
  • Economy
  • World
  • Insights
  • About Us
No Result
View All Result

© 2020 YouTrading UK - Leaders in Trader Training.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie settingsACCEPT
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
__cfduid1 monthThe cookie is used by cdn services like CloudFare to identify individual clients behind a shared IP address and apply security settings on a per-client basis. It does not correspond to any user ID in the web application and does not store any personally identifiable information.
_wpfuuid11 yearsThis cookie is used by the WPForms WordPress plugin. The cookie is used to allows the paid version of the plugin to connect entries by the same user and is used for some additional features like the Form Abandonment addon.
cf_use_obThis cookie is set by the provider Cloudflare content delivery network. This cookie is used for determining whether it should continue serving "Always Online" until the cookie expires.
cookielawinfo-checbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-advertisement1 yearThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Advertisement".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
CookieDurationDescription
YSCsessionThis cookies is set by Youtube and is used to track the views of embedded videos.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
CookieDurationDescription
_ga2 yearsThis cookie is installed by Google Analytics. The cookie is used to calculate visitor, session, campaign data and keep track of site usage for the site's analytics report. The cookies store information anonymously and assign a randomly generated number to identify unique visitors.
_gid1 dayThis cookie is installed by Google Analytics. The cookie is used to store information of how visitors use a website and helps in creating an analytics report of how the website is doing. The data collected including the number visitors, the source where they have come from, and the pages visted in an anonymous form.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
CookieDurationDescription
_fbp3 monthsThis cookie is set by Facebook to deliver advertisement when they are on Facebook or a digital platform powered by Facebook advertising after visiting this website.
fr3 monthsThe cookie is set by Facebook to show relevant advertisments to the users and measure and improve the advertisements. The cookie also tracks the behavior of the user across the web on sites that have Facebook pixel or Facebook social plugin.
IDE1 year 24 daysUsed by Google DoubleClick and stores information about how the user uses the website and any other advertisement before visiting the website. This is used to present users with ads that are relevant to them according to the user profile.
test_cookie15 minutesThis cookie is set by doubleclick.net. The purpose of the cookie is to determine if the user's browser supports cookies.
VISITOR_INFO1_LIVE5 months 27 daysThis cookie is set by Youtube. Used to track the information of the embedded YouTube videos on a website.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
CookieDurationDescription
_gat_UA-42160853-21 minuteNo description
cf_ob_infoNo description
CONSENT16 years 8 months 3 days 6 hours 2 minutesNo description
SAVE & ACCEPT
Powered by CookieYes Logo