Here is why we are wary about chasing NZD rallies post-RBNZ - ING
ING Research adopts a cautious bias on NZD, despite the RBNZ's surprise 50bps hike this week.
NZD/USD jumped more than 1.0% after the hike but then halved its gains. While markets almost fully price in another 25bp rate hike, this is not a given. There is a chance the RBNZ has front-loaded tightening but may struggle to push tightening further if inflation fails to stay high," ING notes.
"That said, even in the event of another hike and the 5.50% projected peak rate being reached, we think the chances of rate cuts by the end of the year have now increased materially, and markets are likely underestimating them. This is why we would be wary about chasing NZD rallies," ING adds.
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This article was written by Adam Button at www.forexlive.com.from Forexlive RSS Breaking News Feed https://ift.tt/3H5fm7q
Analytic Dave
AnalyticalDave is a personal financial analysis portfolio that captures my Derivatives trading, stock, and investing journey. My portfolio does NOT act as a financial advisor to any community. It is only purposed for journaling my story as a self-taught trader and investor.
