The #IronFX Midday Commentary: #Forex markets were relatively quiet during the #European morning Wednesday, with the dollar trading virtually unchanged against most of its #G10 peers in the absence of major #economic releases. The greenback was lower only against #SEK and #NZD. Major #currencies were steady ahead of two potentially major monetary policy events later in the day. The Fed will release the minutes from the June 17-18 #FOMC meeting, and #ECB President Mario #Draghi is scheduled to speak in #London, where he said approximately two years ago to do “whatever it takes” to save the #euro. Fitch, one of the world’s top three credit ratings agencies, yesterday revised up New Zealand’s outlook. The commodity-driven currency broadly strengthened after the release of the statement. During the Asian morning, #RBNZ Assistant Governor John McDermott said that although the Bank had revised up its estimate of potential output to a peak of 2.8% in 2015, faster than 2.5% estimated previously, the bank remained wary of actual growth being stronger than potential growth, which meant they still needed to return interest rates to more neutral levels. The comment kept NZD/USD under upward pressure. NZD/USD is struggling to break the obstacle of 0.8844, and is likely to retreat in light of probably positive US data later in the day from the FOMC minutes.
Posted on: Wed, 09 Jul 2014 11:05:06 +0000
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