Single Currency Soares, New Zealand Dollar Sinks

Market Reviews

The single currency became the firmest thanks to German yields’ increase. German government is going to sell 16 billion euros of 30 year bunds in the coming year (higher than initial 11 billion). 30 year bund yield grew 8 pts to 1.19. 10 year bund yield rose 7 points to 0.37. Greenback remains weak. The House approved the tax bill. Today, the Senate will vote on the bill. New Zealand dollar declined. Japanese yen also softened. Robert Kaplan (Dallas Fed President) indicated that he supports the idea of 3 rate hikes next year.

New Zealand trade deficit increased from -843 million to the 12-year maximum of -1193 million kiwi in prior month. Exports were up 20% yoy to 4.6 billion kiwi. Exports to China rose 43%. Imports surged 27% to the maximum of 5.8 billion kiwi. Current account deficit reduced to -4.68 billion kiwi in the third quarter. Australian Westpac leading index was up 0.1% mom last month. Today, Germany features Purchasing Price Index, Eurozone announces current account, Britain shows CBI reported sales and the US presents existing home sales.