The Kiwi surged overnight following New Zealand’s better-than-expected inflation data, while the stellar UK jobs report allowed GBP-bulls to stay in the driver’s seat. With regards to the broader market sentiment, investors’ morale took another hit yesterday following reports that the US had turned down China’s offer for preparatory trade talks. That said, equities rebounded somewhat, and the safe-haven yen slid after White House economic adviser Larry Kudlow denied the report. The downside revision in BoJ’s inflation projections may have also contributed to the overnight yen-selling.
NZD and GBP the G10 Gainers, Equities Down, BoJ Trims Inflation Forecasts
The dollar traded within a ±0.20% range against most of the other G10 currencies yesterday, with the exceptions being NZD and GBP, both of which outperformed their US counterpart. The dollar gained, only slightly, against NOK and JPY and CAD.
The Kiwi was the big winner, gaining after data showed that New Zealand’s yearly CPI rate stayed unchanged at +1.9% yoy, instead of ticking down to +1.8% as the forecast suggested. Judging by the market response, some participants may...
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