{"id":73596,"date":"2026-10-25T23:38:22","date_gmt":"2026-10-26T03:38:22","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/canadian-and-kiwi-dollars-rise-amid-monetary-policy-shifts-jordan-security-forces-detain-kerak-attackers\/73596\/"},"modified":"2026-10-25T23:38:22","modified_gmt":"2026-10-26T03:38:22","slug":"canadian-and-kiwi-dollars-rise-amid-monetary-policy-shifts-jordan-security-forces-detain-kerak-attackers","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/canadian-and-kiwi-dollars-rise-amid-monetary-policy-shifts-jordan-security-forces-detain-kerak-attackers\/73596\/","title":{"rendered":"Canadian and Kiwi Dollars Rise Amid Monetary Policy Shifts; Jordan Security Forces Detain Kerak Attackers"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>The New Zealand Dollar (NZD) advanced toward 0.5700<\/strong> as markets price in a <strong>98% probability<\/strong> of a <strong>25 basis point rate hike<\/strong> by the Reserve Bank of New Zealand (RBNZ) this Wednesday.<\/li>\n<li><strong>The Canadian Dollar (CAD) strengthened against the US Dollar<\/strong>, with the USD\/CAD pair trading near <strong>1.4000<\/strong>, despite a decline in crude <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a> following eased Middle East tensions.<\/li>\n<li><strong>Jordanian authorities have taken the perpetrators of the Kerak village attack into custody<\/strong> following a Friday assault that left <strong>eight people dead<\/strong> and dozens injured.<\/li>\n<li><strong>US President Donald Trump\u2019s decision to rule out immediate military strikes against Iran<\/strong> has dampened safe-haven demand for the US Dollar, providing a tailwind for commodity-linked currencies.<\/li>\n<li><strong>New Zealand&#39;s inflation remains a &quot;major headache&quot;<\/strong> for policymakers, with analysts forecasting it will stay above the <strong>1-3% target band<\/strong> through late 2027.<\/li>\n<\/ul>\n<h2>Currency Markets: NZD and CAD Defy Headwinds<\/h2>\n<p>The <strong>New Zealand Dollar (<a href=\"\/stock\/NZDUSD\">NZDUSD<\/a>)<\/strong> gathered strength during Monday&#39;s early Asian session, trading near the <strong>0.5700<\/strong> level. This advance is driven by heightened expectations that the <strong>Reserve Bank of New Zealand (RBNZ)<\/strong> will raise the Official Cash Rate (OCR) by <strong>25 basis points to 3.00%<\/strong> at its policy meeting on October 28. Despite a slight cooling in third-quarter CPI to <strong>3.7%<\/strong>, inflation remains stubbornly above the central bank&#39;s target, prompting economists at <strong>ASB Bank<\/strong> and <strong>Westpac<\/strong> to forecast a &quot;higher for longer&quot; interest rate environment.<\/p>\n<p>Simultaneously, the <strong>Canadian Dollar (<a href=\"\/stock\/USDCAD\">USDCAD<\/a>)<\/strong> appreciated even as its primary export, crude oil, faced downward pressure. The <strong>US Dollar (<a href=\"\/stock\/DXY\">DXY<\/a>)<\/strong> slipped after <strong>US President Donald Trump<\/strong> stated &quot;there will not be a strike today&quot; regarding Iran, which reduced the geopolitical risk premium in energy markets. While <strong>WTI crude<\/strong> hovered near <strong>$99.50<\/strong>, the loonie found support from domestic rate hike bets, with swap markets pricing an <strong>80% chance<\/strong> that the <strong>Bank of Canada (BoC)<\/strong> will lift its benchmark rate to <strong>2.50%<\/strong> next week.<\/p>\n<h2>Geopolitical Update: Security Forces Restore Order in Jordan<\/h2>\n<p>In Jordan, security forces have successfully detained the individuals responsible for a deadly attack in the village of <strong>Hamud<\/strong>, located in the southern province of <strong>Karak<\/strong>. The attack, which occurred last Friday, resulted in <strong>eight fatalities<\/strong> and left dozens of others wounded. <strong>King Abdullah II<\/strong> has vowed that justice will reach every terrorist involved, describing the security of Jordanian citizens as a <strong>&quot;red line&quot;<\/strong> that cannot be crossed.<\/p>\n<p>The perpetrators were reportedly identified through video footage showing three armed men opening fire on civilians near a church. <strong>Interior Minister Mazen Al-Faraya<\/strong> has dismissed rumors regarding the prior release of the attackers, confirming that a comprehensive investigation is underway. The incident has sparked a wave of national unity, with both Muslim and Christian communities in Kerak holding joint mourning gatherings to denounce the extremist violence.<\/p>\n<h2>Central Bank Outlook: Fed and RBNZ in Focus<\/h2>\n<p>Global investors are now pivoting toward a heavy week of central bank activity. The <strong>US Federal Reserve<\/strong> is widely expected to hold interest rates steady at its <strong>October 27\u201328 meeting<\/strong>, with the <strong>CME FedWatch Tool<\/strong> indicating a <strong>90.6% probability<\/strong> of a pause. This divergence\u2014with the RBNZ and BoC leaning hawkish while the Fed remains cautious\u2014has narrowed interest rate differentials, further supporting the <strong>Kiwi<\/strong> and <strong>Loonie<\/strong> against the greenback.<\/p>\n<p>However, analysts at <strong>Royal Bank of Canada<\/strong> warn that Canada&#39;s growth may cool in the third quarter as housing market weakness persists. While the currency currently benefits from monetary policy expectations, a sustained drop in oil prices or a shift in the <strong>Fed&#39;s<\/strong> tone could cap the Canadian Dollar&#39;s upside in the coming weeks.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The New Zealand Dollar (NZD) advanced toward 0.5700 as markets price in a 98% probability of a 25 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