Activities in the Forex market was pretty mixed today… Concerns about rising interest rates and signs of a global economic slowdown might continue to hurt investor sentiment. On the flip, Japanese Yen picked up the safe haven bid as did gold.
In his speech this morning, Atlanta Fed President Raphael Bostic said the risk of a powerful economy overheating is the reason the US central bank should stick to its schedule of interest rate increases.
On the economic data front – the US September new home sales fell 5.5%. It’s at the lowest level in nearly two years.
In Canada, in a widely anticipated move, their Central Bank raised its interest rate by 25 basis points to 1.75 per cent. It was the fifth time that Bank of Canada governor Stephen Poloz lifted rates since mid-2017.
And closer to home, New Zealand recorded its widest-ever monthly trade deficit in September. Imports were mainly affected by higher oil prices while exports were hurt by farming seasonality. The deficit came in at $1.56 billion.