The currency markets remain range-bound from yesterday with very little data of note on the agenda this might well be the case for today. Traders still remain positive on the pound and their models are starting to highlight underlying strength in light of the recent credit rating upgrade and GDP boost.
The dollar got a minimal boost from new home sales as they recovered by 6.6% in September, slightly more than expected. Durable goods orders were up by 3.3% and down by -0.8% when airplanes and ships were taken out of the equation. As usual, the durable goods figures bore no resemblance to analysts’ predictions but it has got analysts scurrying to their laptops to revise their models for predicted GDP released tomorrow.
The New Zealand dollar edged higher after the Reserve Bank of New Zealand kept its official cash rate steady at 3%. It was not the rate decision that sent it higher; it was a comment from RBNZ governor Alan Bollard that “further removal of monetary policy support will be required at some stage”. These hawkish comments couldn’t be more blatant, they will raise interest rates but just not yet. The New-Zealand Dollar will certainly benefit from this into the medium term.
There is very little economic data released which could have an impact on exchange rates today. Mostly the market will lounge around and wait for the GDP figure from the states tomorrow.
