Should we keep an eye on the rising Oceania currencies?

Should we keep an eye on the rising Oceania currencies?

14.07.2021

Yesterday, U.S. markets fell for the first time in three days, resulting in a market environment characterized by falling stock prices, rising interest rates, and a stronger U.S. dollar. The S&P 500 closed at 4,369 points, down 0.35% from the previous day, but the decline was not significant overall and remained a minor pullback. The VIX (fear index) rose to 17.1.

In the foreign exchange market, the U.S. dollar rose after the U.S. Consumer Price Index (month-over-month core), released yesterday during U.S. trading hours, showed a significant improvement, coming in at 0.9% versus the 0.4% forecast and reaching its highest level in about 13 years. The GBP/USD pair fell by about 100 pips from 1.390 to 1.380.Meanwhile, the New Zealand dollar rose immediately after the announcement today that the policy rate would remain unchanged at 0.25%. The NZD/JPY pair climbed from 76.7 to 77.6.

Today’s economic indicators include the UK Consumer Price Index, Retail Price Index, and Producer Price Index at 3:00 PM; Eurozone Industrial Production at 6:00 PM; the Turkish Central Bank’s (TCMB) policy rate announcement at 8:00 PM; the US Producer Price Index at 9:30 PM; the Bank of Canada’s (BOC) policy rate announcement at 11:00 PM; US weekly crude oil inventories at 11:30 PM;a press conference by BOC Governor Macklem at 12:00 a.m., testimony by Fed Chair Powell before Congress at 1:00 a.m., and the Beige Book at 3:00 a.m. We will be watching closely to see how today’s economic data releases impact mid-week price movements.