Sharechat Logo

NZ dollar gains vs euro after ECB sticks with policy, steady vs greenback ahead of payrolls report

Friday 7th April 2017

Text too small?

 The New Zealand dollar rose against the euro after European Central Bank president Mario Draghi said there was no reason to change the bank's policy of ultra-low interest rates and bond buying, and was little changed against the greenback ahead of tonight's payrolls report.
The kiwi rose to 65.46 euro cents as at 8am in Wellington from 65.28 cents late yesterday. It traded at 69.66 US cents from 69.72 cents.
Draghi said he saw no reason "to deviate from the indications we have been consistently providing" and the ECB needed to be confident before shifting monetary policy in the economic bloc that inflation picking up. The ECB's view is at odds with that of Germany's Bundesbank, which argued it was legitimate to discuss ending the ECB's monetary stimulus measures. Meanwhile, economists expect US non-farm payrolls for March will show the US economy added 180,000 jobs last month, down from 235,000 in February.
"ECB President Draghi was at the dovish end of the spectrum, praising the impact of negative interest rates, and said he saw no reason to depart from the bank’s current guidance," said Jason Wong, currency strategist at Bank of New Zealand, in a note. Still, "the market is keeping its powder dry for tonight’s US non-farm payrolls release and will be looking out for news snippets as the Trump-Xi summit begins."
US president Donald Trump and his Chinese counterpart Xi Jinping and their wives were due to dine together at Trump's Mar-a-Lago estate in Florida on Thursday evening, with a series of meetings planned between the two leaders on Friday.
The trade-weighted index was at 75.93 from 75.98 yesterday.
The local currency fell to 92.33 Australian cents from 92.48 cents. It traded at 4.8027 yuan from 4.8073 yuan, was at 55.86 British pence from 55.82 pence, and rose to 77.17 yen from 77.04 yen.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar becalmed on US-China trade/politics nexus
Govt to pull Infrastructure Commission into Auckland port imbroglio
Wind to displace diesel for Stewart Island power
Eroad's five year target: doubling unit sales
Blinky boxes and gobbledegook: tips for choosing a cyber-security vendor
Govt support for NZME/Stuff merger difficult, not impossible, says Jarden
NZ dollar stalled; US-China trade signals remain mixed
Ryman warns NZ, Australia to take population ageing more seriously
MARKET CLOSE: NZ shares fall as US-China trade concerns weigh on markets; Ryman slips
NZ dollar stalled; US-China trade deal may be postponed

IRG See IRG research reports