The markets were seen trading subdued yesterday as the US dollar briefly maintained the gains. The euro was seen weakening as economic data showed that German industrial output fell 1.6% on the month in September. This was stronger than the 0.8% decline that was forecast. As a result, the EURUSD fell to mid-July lows briefly at 1.1585 and extended strong losses against the British pound as well.
Oil prices were seen stabilizing following the recent rally. Crude oil futures closed 0.3% lower on the day. As a result, the Canadian dollar was also trading soft. The BoC Governor Poloz said yesterday that inflation was seen within the normal tolerance level for the central bank.
Looking ahead, the RBNZ’s monetary policy meeting is expected to be announced today. The RBNZ’s Overnight cash rate is widely expected to remain unchanged at 1.75%.
