fxmatters

We are coming to the RBNZ Monetary Policy Statement again. The NZD has appreciated after 3 of the last 6 Statements, depreciated 3 times. Which way this time? Whatever the trend over June, the longer-term scenario is for a lower NZ dollar. This opens numerous offshore investment opportunities … Read Shifting times

• 28 May 1816 – “banking establishments are more dangerous than standing armies”—Thomas Jefferson.
• 2 June 1956 – just to show that economists are held in equally high regard, John Williams, a Harvard professor, wrote “the instability of the economy is equaled only by the instability of the economists”.
• 2 June 1987 – US Fed Chairman Paul Volcker resigns. The USD slips around 2%.

The NZ dollar has bounced off its recent highs. This creates some buying and selling opportunities … Read A pause or an end to the NZ dollar rally

• 23 May 1900 – Associated Press News Service forms from regional associations that date back to 1846. Today it is the biggest news gathering operation with 2700 reporters.
• 24 May 1626 – Peter Minuet buys Manhattan from the Canarsee Indians for trinkets worth $24. Or so he thought—it belonged to the Weckquaesgeeks who warred until also paid.
• June – NZD/USD down last three years.

• 14 May 1910 – Canada authorises issuance of silver coins.
• 16 May 2000 – Peter Drucker in Forbes.com: “we live in an economy where knowledge, not buildings and machinery, is the chief resource … Today 40% of our total work force are knowledge-workers” – fx included presumably.
• 17 May 1792 – 24 merchants form New York Stock Exchange at 70 Wall Street.

The weak USD and strong NZD trends have stalled. It seems we came to expect too much, too quick – as usual. Are these trends now over? … Read Further US dollar weakness likely

• 10 May 1278 – Jews of England imprisoned on charges of coining i.e. clipping metal off the coin, an early form of inflation—20 to 30 were ultimately hanged.
• 9 May 1966 – A F Brimmer appointed as first black member of the Federal Reserve Board.
• 12 May 1653 – construction begins on the Wall Street wall in New York.
• 13 May 1995 – NZ wins America’s Cup.

The NZ dollar and the local economy are interdependent. A strong economy causes a strong dollar. A strong dollar causes a weak economy. But what about the high dairy prices? … Read Slow growth ahead