The euro was under pressure during Monday’s Asian trading, ahead of a key Eurogroup meeting of Eurozone finance ministers that will evaluate the progress on negotiations between Greece and its lenders. Expectations for today’s meeting are fairly low since no deal is expected but there is also concern whether Greece can successfully meet its debt repayment deadlines in the coming days and weeks.
The euro dropped to as low as 1.1131 but managed to recover to around 1.1170 compared to a US close on Friday slightly above 1.12. The euro was unable to capitalize on a US employment report for April that was more or less in line with expectations, although a downward revision to March’s figure and weaker-than-expected wage growth weighed on the dollar. The data had little effect on the market consensus that a rate rise from the Fed would probably come between September and December later this year.
The New Zealand dollar fell below the 74 cents level against the US dollar, as more analysts are predicting that the Reserve Bank will probably cut interest rates from their current 3.50% level. The Kiwi fell to as low as 0.7370 but later managed to briefly reclaim 74 cents. The next RBNZ monetary policy meeting is on the 11th of June.
In other news from Asia, China cut its key lending and deposit rates by a quarter-point on Sunday, in an effort to provide more stimulus to its slowing economy.
Looking ahead, the day is likely to be relatively quiet, with the only major news story coming out of the Bank of England that will announce its interest rate and quantitative easing target. No change is expected in policy, but sterling will certainly look forward to Wednesday’s Bank of England Quarterly Inflation Report and press conference by Mark Carney. but there is also concern whether Greece can successfully meet its debt repayment deadlines in the coming days and weeks.
The euro dropped to as low as 1.1131 but managed to recover to around 1.1170 compared to a US close on Friday slightly above 1.12. The euro was unable to capitalize on a US employment report for April that was more or less in line with expectations, although a downward revision to March’s figure and weaker-than-expected wage growth weighed on the dollar. The data had little effect on the market consensus that a rate rise from the Fed would probably come between September and December later this year.
The New Zealand dollar fell below the 74 cents level against the US dollar, as more analysts are predicting that the Reserve Bank will probably cut interest rates from their current 3.50% level. The kiwi fell to as low as 0.7370 but later managed to briefly reclaim 74 cents. The next RBNZ monetary policy meeting is on the 11th of June.
In other news from Asia, China cut its key lending and deposit rates by a quarter-point on Sunday, in an effort to provide more stimulus to its slowing economy.
Looking ahead, the day is likely to be relatively quiet, with the only major news story coming out of the Bank of England that will announce its interest rate and quantitative easing target. No change is expected in policy, but sterling will certainly look forward to Wednesday’s Bank of England Quarterly Inflation Report and press conference by Mark Carney.