Turmoil at the Federal Reserve continues, as one of the Governors comes under pressure to resign, following accusations of mortgage fraud. This was ahead of the important ‘Jackson Hole Central Bank Symposium’ and following the release of the latest minutes, from the Fed. This showed dissent of two members, in the last decision to hold, reflecting the disunity and pressure they are under. The UK inflation number jumped higher than expected, hitting 3.8%, from 3.6%. The UK is close to economic crises, with the Government losing control of the fiscal and monetary situation, while alarm bells are ringing in the bond market. The GBP fell back to 1.3450, while the EUR held ground, trading above 1.1650.The RBNZ cut rates 25 basis points, in line with expectations, but the associated commentary was extremely bearish. The RBNZ noted the economy was struggling and that further rates cuts were more than likely required. The NZD tumbled to 0.5820, with further downside likely, while the AUD drifted to 0.6430. Local markets will be watching NZ Trade data today, while PMI data will be released across Asia, Europe and North America.
