FX Update: The dollar majors have been steady
FX Update: The dollar majors have been steady, while the New Zealand dollar has taken a hit following dovish guidance from the RBNZ policymakers in the wake of its expected decision to leave its cash rate at 1.75%. The Kiwi central bank's SMP wasn't as dovish as markets had anticipated, RBNZ's McDermott subsequently advised markets to recognise policymakers' discomfort with the recent appreciation of the NZ dollar. The antipodean currency dove on this, by over 1.2%, taking NZD-USD to a three-week low at 0.7262. The yen. meanwhile, steadied off its highs, having been aided lower by remarks from U.S. Secretary of State Tillerson, who said that Americans should have "no concerns" over Trump's rhetoric. This helped de-escalate by a notch or two the tone of rhetoric between the U.S. and North Korea, which in turn saw markets descale safe haven positions by a degree or two, which weighed on the yen. USD-JPY recouped to around the 110.00 level, leaving an eight-week low at 109.56. EUR-JPY and other yen crosses saw a similar price action. Sterling softened moderately after the latest Reuters poll found a strong consensus among 70 analysts surveyed for the BoE to leave monetary policy on hold until 2019. Cable dipped to a 2-session low of 1.2970. EUR-USD, meanwhile, pulled back to around 1.1730 after failing to sustain rebound gains to 1.1770. The pair logged a 13-day low yesterday at 1.1688.