GLOBAL: Details of Russia's Memorandum Document Filtering Through
Jun-02 16:42
The Russian delegation in Istanbul on Monday handed over to Ukraine its "memorandum" on a ceasefire, and the Ukrainian team will have a week to study it, Defense Minister Rustem Umerov said. Details of the memorandum are now hitting the major newswires:
"First part of Russian memorandum envisages lifting of all existing and rejection of new economic sanctions and restrictive measures between Russia and Ukraine - IFX"
“Memorandum suggests confirmation of Ukraine’s status as a non-nuclear-weapon state, with explicit ban on deployment of nuclear weapons on its territory” (Reuters)
"Russia sees Ukraine elections before final agreement: IFX" (BBG)
FOREX: NZDUSD Threatens Highest Daily Close Since US Election
Jun-02 16:21
Alongside the Norwegian Krone, the New Zealand dollar is the best performing currency in G10 Monday, led higher by the broad pessimistic sentiment for the dollar and the relatively stable reaction in equity markets to geopolitical and tariff developments over the weekend.
The 1.15% rise during today’s session has prompted NZDUSD to return to an important zone of resistance between 0.6025/40. A close at current levels would be the highest since the US election, signalling scope for a more protracted recovery towards 0.6168, the 76.4% retracement of the Sep ’24 – Apr ’25 selloff. AUDNZD has registered a one-month low at 1.0758, and further NZD outperformance will place attention on the year’s lows at 1.0652.
The hawkish slant from the RBNZ last week has only seen a slight paring back of short positions. As a reminder, while the bank cut rates by 25bps to 3.25% as expected, the board suggested that the base rate is near the 'neutral' zone, which may limit the space for further rate cuts ahead. CFTC Data showed asset managers maintaining their shorts, while the leveraged community pared back only a small portion of the decent short they had initiated the week before.
NZ terms of trade data will cross during Tuesday’s APAC session, however, the economic calendar remains light for the rest of the week. This will likely leave Kiwi susceptible to the broader risk tone and associated greenback trajectory.