Tag: gross domestic product

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GBP/USD remains subdued below 1.3150 ahead of UK flash Q3 GDP data

The post GBP/USD remains subdued below 1. 3150 ahead of UK flash Q3 GDP data appeared com. GBP/USD remains subdued for the third successive session, trading around 1. 3120 during the Asian hours on Thursday. Traders await the United Kingdom (UK) flash Gross Domestic Product (GDP) data for the third quarter due later in the day. The Pound Sterling (GBP) faced challenges against its peers amid growing expectations that the Bank of England (BoE) will cut interest rates in December. BoE policymaker Megan Greene stated on Tuesday that wage settlement data for next year is higher than desired and expressed concern about persistent inflation in the UK, suggesting that monetary policy may need to be more restrictive. The GBP/USD pair also struggles as the US Dollar (USD) advances amid optimism that the prolonged US government shutdown could be resolved this week. The House of Representatives voted 222 to 209 to approve a funding package and end the longest government shutdown in US history on Wednesday. The Bill is now clear to be signed by US President Donald Trump. Earlier this week, Trump already backed the bipartisan deal to end the impasse. The bill’s approval will release a tranche of economic data pending release, except for October’s inflation and jobs data. White House Press Secretary Karoline Leavitt said on Wednesday that the October jobs and inflation data reports are unlikely to be released. The US Dollar also gained support from hawkish Fedspeak, which decreased the odds of a Federal Reserve (Fed) rate cut in December. The CME FedWatch Tool shows markets pricing in nearly a 60% chance of a 25-basis-point Fed rate cut in December, down from 67% a day ago. Federal Reserve (Fed) Bank of Atlanta President Raphael Bostic addressed economic trends at the Atlanta Economic Club on Wednesday. Bostic cautioned that easing policy too soon could “feed the inflation beast,” while noting that a sharp downturn in.

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AUD/NZD eases from 1.1590, after hitting fresh 12-year highs

The post AUD/NZD eases from 1. 1590, after hitting fresh 12-year highs appeared com. The Aussie Dollar has rallied well beyond 2% against its New Zealand counterpart over the last two weeks, reaching 12-year highs near 1. 1600. RBA-RBNZ monetary policy divergence and weak New Zealand macroeconomic figures are crushing investors’ confidence in the New Zealand Dollar. The Reserve Bank of New Zealand rattled markets last month with a Jumbo (50 basis point) rate cut, and is expected to lower interest rates further in the coming months, in an attempt to support an ailing economic growth. New Zealand’s Gross Domestic Product (GDP) shrank at a 0. 9% pace in the second quarter and has contracted in three of the last five quarters. Data released earlier on Tuesday revealed that the RBNZ Inflation expectations for the last quarter of the year remain anchored at a 2. 28% yearly pace, which provides some leeway for the central bank for further monetary easing. The RBA, on the other hand, is showing a more hawkishly tilted monetary policy stance, thus creating an AUD-supportive policy divergence. The bank kept its benchmark interest rate unchanged at 3. 6% last week and warned about upside risks to inflation, which curbed hopes of any further rate cut in the near term. RBNZ FAQs The Reserve Bank of New Zealand (RBNZ) is the country’s central bank. Its economic objectives are achieving and maintaining price stability achieved when inflation, measured by the Consumer Price Index (CPI), falls within the band of between 1% and 3% and supporting maximum sustainable employment. The Reserve Bank of New Zealand’s (RBNZ) Monetary Policy Committee (MPC) decides the appropriate level of the Official Cash Rate (OCR) according to its objectives. When inflation is above target, the bank will attempt to tame it by raising its key OCR, making it more expensive for households and businesses to borrow money and thus cooling.

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