Get a free Quote

From CCY
please type the characters you see:
(spam filter)
spam control image

Apply now

Obligation free account and currency commentary btn_apply_for.gif
Browse By Topic

FX News

Most recent FX News:

Read more

Positive result for crucial first Greek austerity vote

Written by Sam Coxhead on June 30th, 2011.      0 comments

8:15 AM (NZT) The early signs had been appositive ahead of the crucial first Greek austerity vote today. Growth assets were in large demand ahead of the vote that was passed 155-138 with 7 abstentions. Immediately after the positive result, oil and stock markets gave up some of their gains evidence of a little “buy the rumour, sell the fact mentality”. The second vote on the implementation plan for the austerity measures goes ahead today (30th) in Greece, and is expected to pass also.
In somewhat more illiquid markets as we head into month, and financial year end for some, moves have been accentuated. This will continue for the remainder of the week.
The NZD has been the star performer amongst the growth assets in demand, especially against the “safe haven” Swiss Franc and Japanese YEN.
The GBP remains under pressure after more talk of the possibility of further quantitative easing measures from the Bank of England.  Interestingly, overnight UK inflation expectations for the year ahead saw another jump in expectations from 3.4% in May to 3.9% in June, and this will hopefully temper some of the enthusiasm for further QE.
The NZD/GBP hit new post float highs at .5137 and looks poised to move higher again in the short term as this current positive market bias runs its course.
Of note in the last two days has also been a move higher in the US longer end interest rates with the benchmark 10 year yield moving 25pts higher to 3.10%. In the normal course of events, this would have been USD positive. But given a changing in market focus from the Greek situation, to that of the need for Congressional agreement in the US for a debt ceiling hike. The move is been driven by rising risk premiums, as opposed to economic growth driven inflationary pressure.
Today in Australasia we have NZ Building Permits at 10.45am NZT, followed by the more important NBNZ Business Confidence Survey at 1pm NZT, and finally Australian Private Sector Credit at 11:30 AM AEST.

    Last 24 hours trade
  Current level Low High
NZD/USD 0.8252 0.8104 0.8245
AUD/USD 1.0681 1.0520 1.0680
NZD/AUD 0.7729 0.7688 0.7750
AUD/NZD 1.2938 1.2903 1.3008
NZD/GBP 0.5136 0.5065 0.5137
NZD/EUR 0.5718 0.5641 0.5719
NZD/YEN 66.67 65.68 66.80
NZD/CAD 0.8007 0.7949 0.8034