The Opening Bell: Where currencies start on Thursday, December 13, 2018

The Opening Bell: Where currencies start on Thursday, December 13, 2018

By Dan Bell

The NZDUSD opens at 0.6858 (mid-rate) this morning.

The NZD has underperformed as sentiment turns positive and equity markets rally strongly.

Yesterday afternoon President Trump expressed optimism about striking a trade deal with China , announcing that trade talks between US and Chinese officials were taking place by telephone and  also suggested more meetings are likely. "We'll probably have another meeting. And maybe a meeting of the top people on both sides," Trump said. "If it's necessary, I'll have another meeting with President Xi, who I like a lot and get along with very well." Trump also indicated that he may intervene with the Justice Department in the case against Huawei Chief Financial Officer Meng Wanzhou, stating that if it’s “good for the country and good for the largest trade deal ever made” and if he thought it was necessary he would certainly intervene.

The British pound has surged higher as more and more MP’s pledge support for UK PM Theresa May after it was announced late yesterday afternoon that she would face a leadership challenge which is taking place behind closed doors as I type.

The USD softened against the majors overnight after the US Labour Department inflation data release showed consumer prices for the month of November were unchanged following a 0.3% increase in prices during the month of October. The result was in line with expectations.

Crude oil prices are up circa 15 after the Energy Information Administration (EIA) reported US oil supplies decreased for the second consecutive week. This morning’s result showed supplies fell by 1.2m barrels for the week ending 07/12.

Global equity markets sharply higher, Dow +1.55%, S&P 500 +1.63%, FTSE +1.08%, DAX +1.38%, CAC +2.15%, Nikkei +2.15%, Shanghai +0.31%.

Gold prices are marginally higher trading at  $1,245 an ounce. WTI Crude Oil prices have gained 0.8% trading at $52.24 a barrel.

Current indicative rates:

NZDUSD 0.6858 -0.2%
NZDEUR  0.6027 -0.8%
NZDGBP 0.5421 -1.3%
NZDJPY 77.61 -0.4%
NZDAUD 0.9493 -0.6%
NZDCAD 0.9145 -0.8%
GBPNZD 1.8447 1.3%

Upcoming Data releases (NZST):

  • 10:45 - FPI m/m

 

 

 

 

 

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Dan Bell is the senior currency strategist at xe money transfer in Auckland. You can contact him here »

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USD 
NZD
End of day UTC
Source: CoinDesk

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