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Canadian Prime Minister Carney: Indian Prime Minister Modi and I have launched negotiations on a trade agreement that is expected to more than double our trade volume to $70 billion.On November 24th, Ukrainian President Volodymyr Zelenskyy delivered a speech on the 23rd, local time, briefing the Ukrainian delegation on the series of high-level talks held that day in Geneva, Switzerland. Zelenskyy stated that Ukraine is very carefully formulating the steps needed to end the conflict. He revealed that the negotiations in Switzerland on the 23rd would continue, with the team expected to work until late at night and submit further progress reports. Regarding communication with US representatives, both sides maintained substantive dialogue, and Ukraine has received positive signals that US President Trumps team is carefully listening to Ukraines position and concerns. Zelenskyy emphasized that ensuring the steps to end the conflict are effective and feasible is crucial. The current acceleration of the diplomatic process is a positive sign, and Ukraine expects the final outcome to be reflected in a series of correct, powerful, and sustainable action plans.On November 24th, representatives from Ukraine, the EU, and the US met in Geneva, Switzerland, on Sunday to discuss the US-proposed 28-point plan to end the Russia-Ukraine conflict. The EU representative reportedly presented a European version of the counter-proposal. According to the EUs counter-proposal, the number of Ukrainian troops would be capped at 800,000, higher than the US-proposed 600,000. Ukraine also pledged not to use military means to reclaim occupied sovereign territories, and that territorial exchange negotiations would begin from the current military contact line. The EU further proposed that Ukraine would receive a US security guarantee similar to Article 5 of NATO, and that NATO would agree not to permanently station NATO-commanded troops in Ukraine during peacetime, with NATO aircraft only stationed in Poland. Whether Ukraine would join NATO would depend on the consensus of NATO member states, but currently, there is no such consensus. Furthermore, Ukraine will hold elections as soon as possible after the signing of a peace agreement.On November 24th, German Chancellor Merz stated during the G20 summit in Johannesburg, South Africa on the 23rd that he had proposed a simplified version of the "28-point" plan put forward by the United States to end the Russia-Ukraine conflict. Merz stated that this plan is "below the level of a complete solution" and aims to find workable points of consensus in complex negotiations. He indicated that the "28-point" plan is too complex to reach an agreement in such a short time, and he hopes that the "simplified plan" will at least attempt to find a point of entry for reaching a consensus. Merz pointed out that given the current differences, reaching an agreement by the 27th, as demanded by US President Trump, is quite difficult.Ukrainian President Zelensky: Its a good thing to have dialogue with US representatives. There are signs that US President Trumps team "heard us."

NZD/USD falls rapidly from 0.6260 when the RBNZ announces a decline in inflation projections to 3.07 percent

Daniel Rogers

Aug 08, 2022 12:00

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The NZD/USD pair has encountered selling pressure while attempting to surpass the immediate resistance level of 0.6260. The asset has seen bids after the Reserve Bank of New Zealand (RBNZ) announced inflation estimates at 3.07 percent, down from 3.29 percent previously. It could be an indication of waning price pressure, but additional evidence is still needed to support the argument.

 

Price pressures in the New Zealand economy are increasing and have not yet shown signs of weariness. A June report indicates that an inflation rate of 7.3% is adequate to generate headwinds for families. The RBNZ is consistently escalating its policy tightening measures to combat the same. RBNZ Governor Adrian Orr has already increased the Official Cash Rate by 2.50 percentage points.

 

On the front of the US dollar, the US dollar index (DXY) has returned all intraday gains and is currently trading near the day's open at 106.60. While attempting to break over the crucial resistance level of 106.80, the DXY has encountered selling pressure. This week, investors' attention is centered on Wednesday's release of the US Consumer Price Index (CPI).

 

The annual inflation rate is projected to continue at 8.7 percent, down from 9.1 percent in the previous report. Oil prices have been on a downward trend in July, which may be the determining factor for a significant decline in the price increase index. While the US CPI excluding volatile food and oil prices may increase from 5.9 percent to 6.1 percent, the previous reading was 5.9 percent.