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NZD Surges as House Prices Could Be Added to Policy Remit

FOREX

After posting a decent rally on Monday, USD's role has reversed this morning, with the greenback the weakest currency in G10. Many are pinning the pullback in the dollar on news that Trump has granted Biden's team access to transition materials including briefings and initial protocols. While Trump is yet to formally concede and has vowed to continue to fight the election results, this is the clearest sign yet that a formal transition process could be underway.

EUR/USD is within range of yesterday's highs ahead of the NY crossover, but antipodean FX is where the USD weakness is most notable. NZD/USD topped out at a multi-year high of above $0.70, the highest level since mid-2018 on reports that the NZ government could add house prices to the RBNZ's policy remit. AUD is stronger in sympathy.

Datapoints are few and far between Tuesday, with no tier one releases on the docket. The speaker schedule should be of more interest, with BoE's Haskel, ECB's Lagarde & Lane, Fed's Bullard, Williams & Clarida and BoC's Wilkins all due.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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