The New Zealand dollar has fallen vs the US dollar on the backdrop of today’s speech by Deputy Governor of the Reserve Bank of New Zealand, Mr. McDermott. The official noted that the quarterly inflation rate in September was likely low, to the lower boundary of the minimum target range. In addition, McDermott has suggested that further easing of the monetary policy is posible in the future, until inflation stabilized in the middle of the target range.
The yen fell despite the positive data on the balance of payments of Japan. The Current Account released by Japan’s Ministry of Finance, in August was Y2000,8 bln, higher than forecast (Y1502,7 bln) and the previous value of Y1938,2 billion. The high value of the index is a positive factor for the Japanese currency. The report noted that in August, Japan’s largest current account surplus in the balance of payments since 2007 has been registered. The overall rate increased due to improved foreign trade balance due to lower import prices.
Today, Charles Evans said that the Fed has made progress with employment, but the situation remains unsatisfactory with inflation. Evans said that US will probably not have reached full employment. “More underutilized production capacities observed in the labor market”, – said the representative of the Federal Reserve. He also added that the natural rate of unemployment is around 4.7%, but it is likely that unemployment will reach 4.5% by 2020.
EUR / USD: during the Asian session the pair fell to $ 1.1120
GBP / USD: during the Asian session the pair fell to $ 1.2300
USD / JPY: rose to Y104.00 in the Asian session
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