Foreign Exchange Market Update
October 22, 2018
United States (US): No Economic Data Today
This week data includes housing data, jobless claims, durable goods orders, GDP and consumer sentiment.
New Zealand: China Pledged to Support Slowing Economy
New Zealand dollar traded at 65.83 U.S. cents at 2:00 pm PST
NZD fell over 0.65% as Chinese policymakers pledged to support a slowing economy. PBoC offered more support for private firms, including ways to help them tap capital markets for funding over the weekend. That was part of a wider response by Chinese policymakers to the nation's 6.5% annual growth rate in Q3 - the slowest since the global financial crisis. President Xi promised to support the private sector and cut personal income taxes to counter the slowing growth and escalating trade war with the US. New Zealand counts China as its biggest trading partner.
United Kingdom (UK): Brexit
British Pound traded at 1.2964 against USD at 2:00 pm PST.
GBP fell over 0.70% after a media report showed that PM May is facing calls for a no-confidence motion amid discontent among MPs about her handling of Brexit talks following an unsuccessful EU summit last week. May addressed the Parliament and acknowledged that 95% of Brexit deal has been settled, but EU's proposal on Irish backstop remain unresolved. May opposes this because it amounts to splitting the UK into different customs zones. Eight out of ten firms said Brexit hit investment as speed of talks outpaced by reality firms face on ground. The majority of firms said they will implement damaging contingency plans in the absence of greater certainty on Brexit by December.
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This market update is prepared by Cathay Bank for informational purposes only and does not constitute any form of legal, tax or investment advice, nor should it be considered an assurance or guarantee of future exchange rate movements or trends. This information is provided without regard to the specific objectives, financial situations or needs of any recipient. Cathay Bank does not make any representations or warranties about the accuracy, completeness or adequacy of this market update.