Dollar rally lost some momentum as markets are concerned that US President Donald Trump’s firing of FBI Director James Comey could further reduce the support from fellow Republicans and potentially delay his tax reform. Overall though Wednesday has been a fairly steady 9 May, with most currency pairs fairly close to their previous levels, while commodities and stocks have also traded sideways.
Thursday will be dominated by central bank meetings with interest rate decisions to come from both the RBNZ and the BOE. No change to policy is expected by either although the statements will be closely watched for any change in bias, with the BOE Minutes possibly showing an increased leaning by the MPC to raise rates, although the expected outcome is for the MPC to remain at 8-1 to keep rates on hold for now. Elsewhere, the UK will remain in focus, with the release of the Manufacturing/Industrial Production figures for March, while later in the day, form the US, we get the US PPI and weekly Jobless Claims along with a speech from the Fed’s Evans
NB. The RBNZ just left rates unchanged, as expected. For some reason the Kiwi decided it did not like that, and a knee jerk move has seen it fall a big figure – no idea why at this stage apart from the statement which said that policy will remain accommodative for some time to come and that the fall in the NZ TWI is encouraging. The Aud has followed, with AudUsd dropping a quick 30 points.
|INDICES / COMMODITIES|
|ASX SPI: 5882|
By May 11, 2017