12/24/2023 0 Comments Nz us exchange ratesIn other news, OPEC+ announced a 2 million barrels per day reduction to oil supply quotas, the upper-end of the 1m-2m range flagged in the lead-up to the meeting. On market pricing for rate cuts next year, Daly was blunt: “ I don’t see that happening at all.” San Francisco Fed President Daly told Bloomberg it would be “ really challenging” to step down the pace of rate hikes while core inflation is rising, pointing to another 75bps hike next month. Likewise, the USD is up around 0.7%-1.1% in index terms overnight, reversing most of the previous day’s move.ĭespite some murmurings around a possible ‘Fed pivot’ in the coming months, following the weak ISM Manufacturing and job openings data and the RBA’s surprise 25bps rate hike earlier in the week, Fed officials remain steadfastly hawkish. Near-term Fed rate expectations haven’t changed that much (70bps is still priced for next month’s meeting and a terminal rate a touch above 4.50%), but the market has pared back some of the rate cut pricing from mid next year. The 10-year rate is now essentially back to where it was on Monday, before the manufacturing data. US rates are higher across the curve, with the 2-year rate lifting 7bps to 4.16% and the 10-year rate up 14bps, to 3.77%. ![]() Just as the downside surprise to the ISM Manufacturing index earlier in the week drove a big fall in rates and the USD, there’s been a big reversal of those moves overnight. Market attention will now turn to the nonfarm payrolls report released tomorrow night. The ISM Services index suggests the former interpretation, with services sector activity levels still holding at very healthy levels for now. The Prices Paid component fell again, but, at 68.7, it remains relatively high (the manufacturing equivalent is just 51.1), consistent with still-elevated inflationary pressures in the services sector.Īs we noted earlier this week, it was uncertain whether the weakness in the Manufacturing ISM reflected the long-awaited rotation from consumer spending on goods back to services, or whether it hinted at a broader slowdown in economic activity. The key New Orders subcomponent remained at very healthy levels, above 60, while there was a notable increase in the Employment index, which rebounded back into expansionary territory, at 53. As it happened, the Services index was stronger than expected, falling marginally from 56.9 to 56.7, levels still consistent with strong growth in the services sector. After hitting 0.58 in the wake of the RBNZ, the NZD is back to 0.5720 this morning.Īfter the weak ISM Manufacturing survey earlier this week, which had reawakened recession fears, there was greater than usual focus on the ISM Services index overnight. There was a slightly hawkish tinge to the statement, given the RBNZ discussed a 75bps move, but the market reaction has been fleeting. ![]() The RBNZ raised the OCR by 50bps yesterday, as expected. OPEC+ cut oil production quotas by 2m barrels per day, but oil prices are only modestly higher as the US said it would release more oil reserves from the SPR. ‘Bad news is good news’ remains the prevailing theme in equity markets, with the S&P500 down around 0.5% overnight, slightly paring its gains over the past two days. The US 10-year rate is 14bps higher and back above 3.75% while the EUR, which got within a whisker of hitting parity yesterday, is back below 0.99. For example, if you want to exchange NZ dollars US dollars.Ĭommission – This is a common fee that foreign exchange providers charge for exchanging one currency with another.A stronger-than-expected ISM Services index overnight has helped drive a sharp increase in global rates and the USD overnight, reversing the moves from earlier in the week. ![]() ![]() Spread – This is the difference between the buy and sell rates offered by a foreign exchange provider such as us.Ĭross rate – This is the rate we give to customers who want to exchange currencies that do not involve the local currency. In the business, this is sometimes referred to as a ‘spot rate’. It is the rate banks or large financial institutions charge each other when trading significant amounts of foreign currency. Spot rate – This is known more formally as the ‘interbank’ rate. Holiday money rate or tourist rate – This is another term for a sell rate. For example, if you were returning from America, we would exchange your US dollars back into British pounds at the buy rate of the day. For example, if you were heading to Europe, you would exchange British pounds for euros at the sell rate.īuy rate – This is the rate at which we buy foreign currency back from you into your local currency. Sell rate – This is the rate at which we sell foreign currency in exchange for local currency. Foreign exchange can be confusing, so to help break through the confusion, here are some common terms associated with currency:
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |