Kiwi Has Collapsed After the RBNZ Meeting. Investors Expect a Press Conference of the Fed Chairman

During yesterday's trading session, the US dollar weakened against a basket of currency majors. The US dollar index (#DX) closed in the negative zone (-0.31%). The greenback demand has declined before Fed Chairman Jerome Powell's speech. Financial market participants are worried that the US may introduce negative interest rates in the future. Yesterday, US President Donald Trump called on the Fed to cut rates to negative values.

The New Zealand dollar has collapsed sharply during the Asian trading session. The Reserve Bank of New Zealand decided on a key interest rate and left it unchanged at 0.25%. At the same time, the regulator doubled the volume of bonds to be purchased as part of the quantitative easing program and announced a possible transition to negative interest rates amid the economic consequences of coronavirus. So far, rates will remain at the current level, but their reduction is quite likely.

The "black gold" prices are consolidating. At the moment, futures for the WTI crude oil are testing the $25.25 mark per barrel. At 17:30 (GMT+03:00), the US crude oil inventories will be published.

Market indicators

Yesterday, there was the bearish sentiment in the US stock market: #SPY (-1.99%), #DIA (-1.85%), #QQQ (-2.09%).

The 10-year US government bonds yield has fallen again. At the moment, the indicator is at the level of 0.66-0.67%.

The news feed on 2020.05.13:
  • - UK GDP data at 09:00 (GMT+03:00);
  • - UK manufacturing production at 09:00 (GMT+03:00);
  • - Producer price index in the US at 15:30 (GMT+03:00).

by JustForex, 2020.05.13

We advise you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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