Fed Chair Powell stated that the FED is independent from US President Trump, who is asking for extensive rate cuts. Also the Fed Chairman specified that many at FOMC anticipate that more accommodation may be required. In addition, St. Louis Fed President Bullard considered a possible July cut as more of an “insurance” against a possible slowdown of the US economy. Also, Atlanta Fed President Bostic had reiterated his total agreement with Powell’s view.

RBNZ remained on hold at 1.50%, however in its statement the bank stated that a lower OCR may be needed. The bank identified the downside risks around the employment market and inflation outlook as reasons for a possible future rate cut . It also stated that there is a weaker global economic outlook and a risk of an ongoing subdued domestic growth.

Other economic highlights, today and early tomorrow

Today during the European session, we get Germany’s GFK Consumer Sentiment indicator for July and later on from the Czech Republic, CNB’s interest rate decision. In the American session, we get the US durable goods orders growth rates for May and later on, the EIA crude oil inventories figure. In tomorrow’s Asian session, Japan’s retail sales growth rate for May are due out.

NZD/USD H4

EUR/USD H4

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