PPI — News Archive

The New Zealand dollar dropped today even though domestic macroeconomic data released overnight beat expectations.

The Sterling pound today traded lower against the US dollar as markets awaited the crucial meeting between the British PM Theresa May and her cabinet to approve the draft Brexit deal. The pound declined further following the release of weak UK consumer price index report in the early London session, which further soured investor sentiment towards the Sterling.

The US dollar is strengthening at the end of the trading week, buoyed by new economic data that shows inflation pressures remain in check. The greenback further accelerated on a hawkish central bank that is set to raise interest rates next month. The currency’s gains were capped by retreating Treasury yields.

The New Zealand dollar fell against some of its most traded rivals, including the US dollar and the Japanese yen, today. The most likely reason for the losses was the slowing producer inflation in China, New Zealand’s major trading partner.

The Canadian dollar failed to gain today despite better-than-expected growth of Canada’s economy. The possible reasons for the weakness were: the strength of the US dollar, the decline of crude oil prices, and other macroeconomic indicators, some of which were not that good.

The Japanese yen rallied intraday amid risk aversion caused by sell-off of Asian stocks. But the currency retreated later after most of European and US equities logged big gains.

The euro today rallied slightly against the US dollar despite the lack of any major data releases from the eurozone and the simmering Italian budget drama. The EUR/USD currency pair’s rally is most likely due to a technical pullback given yesterday’s massive decline and the risk-off market sentient that still exists.

The British pound today fell significantly against the dollar following the release of the latest UK inflation data, which missed expectations. The pound was also weighed down by the ongoing European Union Brexit summit, which is not expected to result in a deal.

The Chinese yuan is struggling to find direction on Tuesday as the federal government released economic data that should trouble both officials and investors. Analysts do warn that the currency may get a lift on state stimulus amid the lingering trade dispute between the world’s two largest economies.

The Australian dollar was basically flat against most of its major peers following the release of policy minutes by the Reserve Bank of Australia and inflation data in China, Australia’s biggest trading partner.