Greenback Spiked Higher, But Then Dropped, Pound Weakened
The greenback reinforced as 10 year yield reached the 3-year maximum of 2.725. The yield later reduced to 2.696 and thus dollar lost its strength. Sterling has broadly weakened and it’s now trading as the softest. Kiwi was buoyed by positive trade balance figures for prior month, that marked a surplus of 640 million NZD. Exports increased 26% yoy to 5.55 billion NZD. Imports were up 11% to 4.91 billion NZD. In an annual terms, total exports rose to the maximum of 53.7 billion NZD in 2017. Imports edged up to the highest level of 56.5 billion NZD. Exports to China surged 27% in 2017, settling around 12 billion NZD. Exports to Australia lifted to 8.8 billion NZD.
Economic adviser to Shinzo Abe (Japan Prime Minister) stated that even after BoJ Governor leaves his seat, the Bank will stick to the current policy. Haruhiko Kuroda isn’t likely to be voted for a governor once again, that’s why his successor must be a supporter on the so-called “Abenomics”. Japan retails sales grew 3.6% yoy last month, household spending fell -0.1% yoy, unemployment rate increased to 2.8%.
Australia NAB business conditions lifted from 12 to 13 in prior month. Business confidence grew from 7 to the 11, marking the half a year maximum. As of today’s data, Eurozone will release Gross Domestic Product and confidence reports, Germany will announce Consumer Price Index, Swiss will present trade balance and KOF, Britain will feature mortgage approvals and M4 and US will show consumer confidence.