NZD strength to be put in the spotlight

21 January, 2014

Jak May

Yesterday saw limited market movement with the US bank holiday in full swing. Most pairs closely within the range of the USD sitting a little shy from where they sat mid Friday. CPI gave us a glimpse of things to come with a rise of 1.6% in Q4, the fastest growth since the middle of 2012. New Zealand remains one of the closest watched currencies this year. Recent data from New Zealand would seem to warrant a tightening of monetary policy but there is the possibility that, like other higher-beta currency controlling central banks, the recent NZD strength will preclude the central bank from further encouraging investment into it. The main structural data from the world economy will come from the German economy with the publication of the latest ZEW reading of German growth expectations due at 10am GMT. The market is looking for a rise to 64.0 from the 62.0 previously which would be the highest level in 8 years. Canadian interest rate decision due later on in the day, remember the CI account managers are here to help you get on your way to sending money abroad.