The Kiwi Dollar was the currency market’s largest gainer after gaining 0.7% on speculation of an interest rate hike in 2017. Graeme Wheeler, the head of the Reserve Bank of New Zealand, spoke earlier today; Wheeler said that the cufrrent 1.75% lending rate was likely to go lower given the most recent guidance. Though he pointed out that global inflation could put an end to loose policies elsewhere among developed economies, markets took that to suggest higher rates in New Zealand. Some 80% of market players are betting on a 2017 rate increase.
As reported at 10:26 am (GMT) in London, the NZD/USD was trading at $0.7209, a gain of 0.38%; the pair’s daily range was established with a low of $0.7159 while the high was at $0.7222. The NZD/JPY was up 0.20% at 81.7769 Yen while the AUD/NZD was down at N$1.0398.
Euro Up ahead of ECB Policy Decision
The Euro continues to creep higher rising another 0.2% in early trading ahead of the European Central Bank decision. The latest polls show the ECB holding the benchmark rate at the existing 0.%. The question is what will the ECB modify in regards to the quantitative easing program it has long embarked on. The EUR/USD was trading at $1.0796, a gain of 0.33%.