Forex news for New York trading on March 9, 2016:

  • RBNZ cuts rates to 2.25% in surprise move
  • RBNZ's Wheeler: China building and manufacturing "very much under stress"
  • New Zealand dollar falls more than a cent after surprise RBNZ rate cut
  • Full text of the RBNZ decision March 10, 2016
  • Bank of Canada holds overnight rate at 0.50%, as expected
  • Full text of the Bank of Canada statement March 9, 2016
  • Senior European bank officials concerned about ECB cut - FT
  • US 10-year note sells at 1.895% vs 1.885% WI
  • February 2016 UK NIESR GDP estimate 0.3% vs 0.4% prior 3m/3m
  • January 2016 US wholesale inventories 0.3% vs -0.2% exp m/m
  • BOE's Furse says there are clearly domestic risks from a UK EU exit

Markets:

  • Gold down $10 to $1251
  • WTI crude up $1.80 to $38.30
  • S&P 500 up 10 points to 1989
  • US 10-year yields up 5.25 bps to 1.88%
  • CAD leads, NZD lags

Two similar central banks saw a starkly different world today. The Bank of Canada left rates unchanged and struck a constructive tone with no hints at a coming cut. The Canadian dollar soared in response and was given a helping hand by a nearly 5% rally in oil.

In New Zealand, the RBNZ sees slower global growth, falling inflation expectations and wants a lower currency. In response, Wheeler made a surprise announcement to cut rates and the kiwi tumbled to 0.6645 from 0.6775.

Other currencies were volatility as well. Euro shorts looked to cover ahead of the ECB decision and that helped the euro turn from a daily low of 1.0944 in early US trading to a session high of 1.1035 a few hours later. Last at 1.1004 as we begin to settle in and wait for Draghi.

USD/JPY also went from low to high. A dip down to 112.25 was bought aggressively in waves and we finish near the session's best level at 113.36. Higher Treasury yields and better risk sentiment helped to lift the pair.

For the first time in awhile, cable was the quiet pocket of the market. There was some volatility around the London fix as it jumped to 1.4235 from 1.4186. So far, the European high of 1.4241 has held.