Forex Today: Hawkish RBNZ Suggests May Even Hike Rates - 22 May 2024

The Reserve Bank of New Zealand maintained its Official Cash Rate at 5.50%, while suggesting that rate cuts will come later than expected or may even be raised first, causing the NZD to gain in value.

  1. The Reserve Bank of New Zealand decided to hold its Official Cash Rate at 5.50% as expected. However, there was a hawkish surprise on policy as the Bank suggested cuts will begin later than currently expected, and that the next move could even be a rate hike.
  2. Major stock market indices are again rising to reach new all-time highs, most notably in the USA where the NASDAQ 100 Index, the S&P 500 Index, and the Dow Jones 30 Index have all made new highs over the past day. Trend traders will look to be in long trades here, while noting the bullish momentum does not seem very strong.
  3. Markets are awaiting the release of FOMC Meeting Minutes later, from the most recent FOMC meeting.
  4. Yesterday’s release of Canadian CPI data came in as expected, with the month-on-month increase falling from 0.6% to 0.5%. Median CPI was slightly lower than expected, giving a very small dovish surprise.
  5. Precious metals have fallen back from their recent new highs, with the past day seeing a decline in Gold but a rise in Silver. However, trend traders will still be looking to be involved on the long side, probably in both metals.
  6. The industrial metal Copper has also declined after reaching a new record high a couple of days ago, and trend traders will remain interested here too. If Copper futures are too big for you, or your broker does not offer a Copper CFD, there is a Copper ETF called Copper.
  7. There will be a release of UK CPI (inflation) data today. A fall in the annualized rate from 3.2% to 2.1% is expected.
  8. In the Forex market, since the Tokyo open, the strongest major currency is the New Zealand Dollar, while the Euro is the weakest. Goldman Sachs are forecasting renewed strength in the US Dollar due to an emerging divergence on monetary policy between the Fed and the central banks of other major global currencies.
  9. Japan’s 10-year government yield has risen to 1%, which is another new 11-year high.
  10. Yesterday the Governor of the Bank of England stated he thought the Bank’s next move on rates will be a cut.

Ready to trade our daily Forex forecast? Here’s a list of some of the best regulated forex brokers to check out. 


Industry Responses: Strategies For Overcoming Regulatory Challenges In US Bitcoin ETF Approval

The journey towards the approval of Bitcoin Exchange-Traded Funds (ETFs) in the United States has been fraught with regu... Read more

Navigating Market Volatility: Assessing The Impact Of A Strengthening Dollar On US Stocks

In recent months, US stock markets have experienced a notable rally, with indices reaching new highs. However, amidst th... Read more

Forex Today: Feds Kashkari Suggests Delaying Rate Cut To December - 17 June 2024

Fed’s Kashkari Males Implicitly Hawkish Statement; Fears Grow of Far-Right Victory in France; Indonesian Rupiah at 4-Y... Read more

US Inflation Dips Unexpectedly To 3.3% In May, Fed Remains Cautious - 13 June 2024

There was good news on the inflation front, as inflation decelerated in May and was lower than anticipated. Read more

Forex Today: Lower US Inflation Sends Stocks Soaring Despite Cautious Fed - 13 June 2024

US inflation data showed no increases in prices over the past month, leading to an expected fall in annualized CPI which... Read more

Forex Today: US Stock Indices Close On Record Highs Ahead Of CPI, FOMC - 11 June 2024

US Stock Market Continues Advance, European Markets Also Bullish; Gold Near 2-Month Low; Euro Finds Support; Indonesian ... Read more