NZD: Near-Perfect Carry-Friendly Conditions Against A Flatter OIS Curve – ING

ING FX Strategy Research notes that NZD has outperformed in the recent near-perfect carry-friendly conditions (ie, low interest rate volatility and resilient risk appetite).

“The RBNZ has been saying no thanks to a strong NZD for a while and is likely to express concern at the latest carry-fuelled rally. The central bank is likely to respond by shelving rate hike plans to 2H18; the flatter OIS curve should keep NZD upside limited, with ramped up RBNZ jawboning also tempering speculative investors in the short-term,” ING argues.

In line with this view, ING targets NZD/USD at 0.71 in 1-month and at 0.68 in 3-month

Source: ING Global Markets Research

The article is published by one of the foremost sources of Forex trading information. Link to the original article above.

from eFXNews http://feedproxy.google.com/~r/Efxnews/~3/bluv_l3JOdk/nzd-near-perfect-carry-friendly-conditions-against-flatter-ois-curve-ing

from Online Forex Trading Resource
View thesource article here

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s