US equity markets surged with confidence ahead of the US Thanksgiving holiday, as tech sentiment returns and Fed speculation is more positive. The Fed is now expected to cut rates at their December meeting and hopes rise on the replacement of the Fed Chairman. Powell will be replaced in the New Year and by a Trump pick, that will favour a low interest rate environment. The much-anticipated UK Budget was well received and the GBP rallied, while bond yields fell. The GBP jumped to 1.3200, supporting the budget, while the EUR looks to regain 1.1600.
The RBNZ cut rates 25 basis points, but the commentary indicated this would be the last in the series and that rates may begin to rise again in 2026. This was welcomed in the FX markets, the NZD surged back to 0.5700 following the outlook of the RBNZ, while the AUD regained 0.6500.
