FX News: NZD Flattens Against GBP

FX NEWS – The New Zealand dollar flattened against the British pound overnight. Sterling last traded at NZ$1.97244, or 0.11% on the day.

Investors of the pair will probably focus on the UK Supreme Court ruling over Boris Johnson’s actions.

The ruling found that the British Prime Minister acted unlawfully when he asked the Queen to suspend the Parliament. The British pound gained strength after the news.

After this, the next stop for the markets would be Johnson’s meeting with European officials in the next days. Traders are cautiously hoping for a breakthrough in Brexit talks.

On the kiwi side, markets had expected some tangential impact from RBA Governor Lowe’s speech. Yesterday, the markets kept close tabs on Lowe’s dovish tone. Last week’s jobs data in Australia showed higher unemployment.

Traders will also be seeking signals from US-China trade negotiations. In recent days, mood has been positive as both sides tout talks are “productive.”

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Elsewhere in the forex markets, the dollar remained largely strong. US Treasury Secretary Steven Mnuchin confirmed that US-China trade talks will continue in October. However, concerns over slowing global growth still dragged the market down.

The dollar index was up to 98.28 after the news.

Mnuchin said that trade discussions will commence in two weeks. He and Robert Lighthizer, US trade representative, will meet Vice Premier Liu He.

Against the yen, the dollar didn’t move much at 107.53. Meanwhile, the euro traded at 1.0992, which is near the 28-month low of 1.0926.

On Monday, the euro fell 0.2% after data showed that German manufacturing weakness worsened in September. The growth in the service sector also faltered, which fueled more worries over the eurozone economy.

The Australian dollar moved after Lowe’s speech.