After a stormy session which took place yesterday, the European equity markets didn’t settle down in early Thursday’s trading. All major indices are trading much below the breakeven line which could suggest that political risks might be weighing on longer than expected, even as the US indices predominantly snubbed those risks ending the day with just negligible losses.

In terms of currencies, the NZD drew most of attention during the Asian session as it was unable to resist pronounced dovish remarks coming from RBNZ’s governor Wheeler and his assistant McDermott. In effect, the New Zealand dollar tumbled significantly and the NZ’s currency was by far the weakest one among its G10 peers. The case is continuing with the NZD losing as much as 1% against the greenback. Moreover, a decline seen in the risk-correlated NZD might be slightly exaggerated by a risk-off mode which appears to begin slowly coming in with the Japanese currency being the brightest spot in G10.

Looking forward, the British pound remains little changed in the day as it’s wobbling just under the flat line. It’s a ramification of fairly unequivocal data which came in earlier today. Even as the published metrics seem to be quite GBP-conducive, at least on the face of it, the outlook deteriorates when we take a closer look at a whole quarter. In spite of the fact that industrial production rebounded 0.5% mom and 0.3% yoy in June and manufacturing production was in line with a projection, a massive blow came from construction output which massively missed a forecast.

The RBNZ stole the show overnight when it comes the FX market substantially weakening the NZD. While we’re slowly moving to an end of the week, there are getting more important macroeconomic releases which could carry significant reverberations on currencies, US PPI is among them. Although, PPI isn’t the most crucial inflation print as far as the US economy is concerned, it could offer a hint before tomorrow’s CPI report. Besides, two central bankers’ speeches are on the agenda as well.