The US dollar continued to post some gains yesterday across the board. However, the gains were limited with the Japanese yen staying firm. The gains in the yen came about due to ongoing escalating tensions from North Korea which kept investors appetite in check.
The US President Trump, in response to North Korea’s actions, said that the United States would respond with "fire and fury." The economic data released yesterday included the German trade balance data which widened more than expected. Earlier today, inflation data from China showed that consumer prices rose 1.4% on the year. This was less than the forecast of a 1.5% increase. Producer prices index was also seen rising at a softer pace of 5.5%
Looking ahead, the markets will be focusing on the RBNZ’s meeting coming up later this evening. No changes are expected to the interest rates at today’s meeting. Canada will be releasing the building permits figures.
