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%.
*Daily move - against G10 rates at 7:30am, 09.10.24
** Indicative rates - interbank rates at 7:30am, 09.10.24
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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