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20 Aug 2025

Currency Markets Steady As Traders Await Fed Communications

It’s quiet. Too quiet. Most major currency pairs remain trapped in tight price ranges this morning as volumes fall, but the dollar is firming slightly as traders hedge themselves against an unexpectedly-hawkish message from Jerome Powell at Friday’s meeting in Jackson Hole, and Treasury yields are pushing modestly higher. Although technology stocks are paring their losses after yesterday’s swoon, broader equity indices look set to print slightly lower at the open. The British pound is almost unchanged even after inflation climbed to an 18-month high, topping market forecasts and seemingly complicating the Bank of England’s easing plans. According to an...

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RBNZ: who let the doves out?

After holding steady last time out the Reserve Bank of New Zealand once again spread its ‘dovish’ wings at today’s policy meeting. As expected, the RBNZ announced another 25bp cut which lowered the Official Cash Rate to 3%, however the updated assessment of the economic landscape was more downbeat and opened the door to settings being moved into ‘accommodative’ territory over future meetings (chart 1). The sluggish performance of the NZ economy remains front of mind with the RBNZ noting the “recovery stalled in the second quarter of this year”. NZ economic growth is forecast to improve but remain below...

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