The November rally on global equity markets resumed overnight, supported by the presumption that ‘peak interest rates’ have been reached and the Fed will next look at cuts. Consumer Confidence ticked higher in the US and France, but remains in the doldrums, in Germany. The Richmond Fed Manufacturing Index and the Dallas Fed Manufacturing Index both remain in negative territory. US Bond Yields head lower, and the US Dollar continues to weaken. The GBP hit 1.2700, while the EUR regained 1.1000, despite the gloomy economic data.
The softer reserve allowed further gains for commodity currencies, with the AUD regaining 0.6650, while the NZD broke above 0.6100 ahead of the RBNZ interest rate decision. The RBNZ is expected to leave rates unchanged and have some comfort as inflation readings are few and far between in the deep South.