Currencies relax as US markets celebrate the President’s Day
The major currencies were stuck in a tight range against the US dollar as holiday thinned trading hardly gave the traders to take positions.
This coupled with the fact that the market still awaits fresh inputs from the data releases expected this week kept the overnight and early morning trades lackluster.
While all this was happening the New Zealand dollar hit a 22 -year high on expectations that wage induced inflation would lead to further rate hikes in the near future- the interest rates of 6.5 percent in New Zealand is the highest in developed countries.
The markets this week keenly await the preliminary Q4 GDP numbers, the consumer price index and the minutes of the Fed meeting which should shed further light on the state of the economy.
Should the Fed in the minutes of its February meeting show signs of more aggressive rate hikes the market may drive the dollar higher putting aside concerns of the ever- increasing deficit.
This coupled with the fact that the market still awaits fresh inputs from the data releases expected this week kept the overnight and early morning trades lackluster.
While all this was happening the New Zealand dollar hit a 22 -year high on expectations that wage induced inflation would lead to further rate hikes in the near future- the interest rates of 6.5 percent in New Zealand is the highest in developed countries.
The markets this week keenly await the preliminary Q4 GDP numbers, the consumer price index and the minutes of the Fed meeting which should shed further light on the state of the economy.
Should the Fed in the minutes of its February meeting show signs of more aggressive rate hikes the market may drive the dollar higher putting aside concerns of the ever- increasing deficit.
posted by Drs Search @ 10:02 AM
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