Asia Summary and Highlights 14 Nov
UK drops income-tax hike plans ahead of November budget
RBNZ’s confirmation that it will ease mortgage loan-to-value restrictions
Asia Session
It is reported in early Asia that the UK government will drop income-tax hike plans ahead of November budget. Prime Minister Keir Starmer and Chancellor Rachel Reeves seems to have bowed to the rising tensions within Labour and voter pushback. GBP/USD dropped 0.35% to trade at 1.3145.
RBNZ’s confirmed that it will ease mortgage loan-to-value restrictions on 1st December, rising 5% for both owner-occupiers (with an LVR above 80%) and investor (with an LVR above 70%). Combined with stronger tier two data, the Kiwi is outperforming majors on Friday. NZD/USD is trading 0.59% higher at 0.5687. AUD/USD is trading 0.1% while USD/CAD slips 0.07%. Japan PM Takaichi backs away from minimum-wage target after pushback from regional firms. USD/JPY is trading 0.03% lower. Else, EUR/USD is up 0.1%.
North American session
The USD extended European losses early in the session before finding a base, EUR/USD rising to 1.1640 from 1.1615 and USD/JPY falling to 154.50 from 154.65, though these were off the USD lows. EUR/GBP slipped to .8820 from .8830 and EUR/CHF fell to .9225 from .9240.
Fed talk saw Daly balanced but Musalem and Hammack hawkish. The main story was however slippage in equites, which saw USD/CAD rising to 1.4035 from 1.40 and AUD/USD falling to .6525 from .6550.