Currency news

RBNZ sounds a warning for the economy

Head of FX Analysis at Equals Money
-
3
min read
Publish date
October 9, 2024
    • RBNZ cut rates and put out dovish outlook
    • USD starting strong ahead of Fed minutes


    Yesterday's currency recap

    What started off as a day set for negative sentiment quickly flipped, with all stocks finishing higher and even taking GBP along for the ride.

    Overnight, the Reserve Bank of New Zealand (RBNZ) cut rates by 50 bps and the language in the accompanying statement signalled a more dovish approach with hints that any further reductions would hinge on potential economic slowdowns. As a result, GBPNZD is up 0.65%.

    Today's GBP rates

    Currency pair Daily move* Indicative rate**
    GBPAUD 0.36% 1.9433
    GBPCAD 0.38% 1.7886
    GBPCHF 0.42% 1.1224
    GBPDKK 0.15% 8.9011
    GBPEUR 0.15% 1.1934
    GBPJPY 0.05% 193.9570
    GBPNOK 0.87% 14.0434
    GBPNZD 0.11% 2.1388
    GBPSEK 0.07% 13.5607
    GBPUSD 0.08% 1.3092


    *Daily move - against
    G10 rates at 7:30am, 09.10.24

    ** Indicative rates - interbank rates at 7:30am, 09.10.24

    Upcoming speeches

    • USD: Fed Bostic, Logan, Goolsbee, Jefferson and Collins

    What we think

    Following the RBNZ's concerning comments suggesting downside risks to the economy and its global impact, USD is starting the day marginally higher.

    Aside from Fed speak, there's little data of note in the morning and afternoon today. In the evening, we have the release of the Fed minutes. However, given markets have taken the lead from the recent jobs data to ease the number of rate cuts expected by the Fed, not much market impact is expected from it.

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