Foreign exchange market. Asian session: the New Zealand dollar rose after the hike of interest rate

Economic calendar (GMT0):

06:00    Switzerland        Trade Balance                      March    2.62      2.79       2.05

08:00    Germany            IFO - Business Climate           April      110.7    110.5     111.2

08:00    Germany            IFO - Current Assessment      April      115.2    115.7     115.3

08:00    Germany            IFO - Expectations                April      106.4    105.9     107.3

The U.S. dollar was weaker against the most major currencies. The U.S. currency remains under pressure after the yesterday’s disappointing figures from the U.S. housing market.

The Australian dollar climbed a little against the U.S. dollar. There were no impulses (the lack of economic data) that could influence the currency.

The New Zealand dollar increased against the U.S. dollar and reached a one-week high of $0.8638. The reason for the strength of New Zealand dollar was the hike of interest rate by the Reserve Bank of New Zealand. The central bank raised its interest rate to 3.0% from 2.75%. This decision was expected by market participants. The Reserve Bank of New Zealand governor Graeme Wheeler said this move is necessary because of the inflationary pressures. The likelihood is very high that the central bank will hike interest rates again in June.

The Japanese Yen was up against the U.S. dollar after the Japanese Prime Minister Shinzo Abe said that a US-Japan free trade deal had not been finalised yet.

EUR/USD: the currency pair climbed to $1.3825

GBP/USD: the currency pair was up to $1.6790

USD/JPY: the currency pair declined to Y102.25

NZD/USD: the currency pair increased to $0.8638

The most important news that are expected (GMT0):

09:00  Eurozone                  ECB President Mario Draghi Speaks                                    

10:00  United Kingdom        CBI retail sales volume balance                    April     13       18       

12:30  U.S.                          Durable Goods Orders                                 March  +2.2% +2.1% 

12:30  U.S.                          Durable Goods Orders ex Transportation     March  +0.2% +0.6% 

12:30  U.S.                          Durable goods orders ex defense                 March  +1.8%            

12:30  U.S.                          Initial Jobless Claims                                     April     304     309     

16:15  Eurozone                 ECB’s Vitor Constancio Speaks                                           

23:30  Japan                      Tokyo Consumer Price Index, y/y                  April     +1.3%            

23:30  Japan                      Tokyo CPI ex Fresh Food, y/y                       April     +1.0% +2.8% 

23:30  Japan                       National Consumer Price Index, y/y              March  +1.5%            

23:30  Japan                       National CPI Ex-Fresh Food, y/y                   March  +1.3% +1.4%