The Traderszone Network

Forex news for Asia-Pacific trading on June 8, 2016:
Markets:
– Nikkei down 1.05% to 16654
– WTI crude up 32-cents to $51.55
– Gold up 64-cents to $1263
– NZD leads, AUD lags so far
The RBNZ decision was the focus and it delivered some volatility as the RBNZ delivered very little at all. The OCR was left unchanged. That was mostly expected but not entirely and NZD jumped a cent on the headlines as it broke out to a one-year high. The statement was mostly a repeat but cut down on the jawboning and was more upbeat on the global outlook.

Pair falls to 13-month low
The pair broke through the November low and continues to fall after the RBNZ left rates on hold and an upbeat Wheeler triggered speculation they may be done cutting rates.

Go problems in your European country? Blame Brexit
The Dutch government forecasts a Brexit would cost them 1.2% of GDP or 10 billion euros.
I’d love to see the assumptions on something like this. These are governments who can’t forecast what the economy will be doing in a month and they’re estimating the effects of an unknown new partnership.

I spent almost 3 hours watching the morning session of the recent Brookings conference on negative interest on reserves. Tomorrow another 3 hours, which may have more material of great interest (Kimball, Bernanke, etc.)  But today’s presentations were very good, and deserve a post.

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Lenders in Europe and Japan are rebelling against their central banks’ negative interest rate policies, the FT reports.

Yen crosses falling
Yen crosses are under some pressure today despite the positive risk to in US trading and continued commodity gains.
The yen is the second-best performer in Asia-Pacific trading after the kiwi (which ripped higher on the RBNZ).

By EconMatters

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