{"id":59774,"date":"2023-04-05T10:36:15","date_gmt":"2023-04-05T07:36:15","guid":{"rendered":"https:\/\/ironfx-com-php8.wp-dev.int.theitops.net\/?p=59774"},"modified":"2025-10-17T10:03:15","modified_gmt":"2025-10-17T07:03:15","slug":"rbnz-takes-the-markets-by-surprise","status":"publish","type":"post","link":"https:\/\/www.ironfx-id.com\/ph\/rbnz-takes-the-markets-by-surprise\/","title":{"rendered":"RBNZ takes the markets by surprise"},"content":{"rendered":"

The USD continued to edge lower against its counterparts yesterday overall, weakening also from the dark clouds that have started to surround the US economy. It should be noted that Fed policymakers yesterday made statements that maintain the view that more rate hikes are needed despite some easing of inflationary pressures in the US economy, which may have an additional adverse effect on economic activity. The comments in conjunction with the JOLTS Job Openings for February dropping below 10 million and reaching levels not seen since May 2021 tended to weaken US stock markets that edged lower. Also, the market jitters were intensified by JP Morgan\u2019s CEO Jamie Dimon, who stated that the banking crisis is still not over. On a fundamental level, we note that former US President Trump was officially charged for a hash money scheme before the 2016 elections, yet the overall issue despite being juicy does not seem to have a market effect. Gold\u2019s price took advantage of the weakening USD and its price per ounce jumped over 45 dollars yesterday a move that if repeated today could bring near record high levels. On the commodities front, WTI\u2019s price remained at relatively elevated levels, prevented to correct lower possibly also due to the surprise drawdown reported by API yesterday for last week, implying that the US oil market remains tight. In the FX market, we note that New Zealand\u2019s RBNZ took the markets by surprise hiking rates by 50 basis points and its monetary policy tightening seems not to be over, as implied in a rather confident accompanying statement. In the European theatre, we note that investors seem to be placing some confidence in the UK economic outlook once again as the pound was supported yesterday despite some mixed signals from BoE policymakers. BoE\u2019s Tenreyro yesterday sounded dovish as she stated “I expect that the high current level of Bank Rate will require an earlier and faster reversal, to avoid a significant inflation undershoot,” while in contrast BoE Chief Strategist, Pill stated that the bank needs to \u201csee the job through\u201d implying that more rate hikes may be required.<\/p>\n\n\n\n

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