Forex Flash: Kiwi Flew again – ANZ
FXstreet.com (Barcelona) - NZD's seasonality recurred with NZD being the best performing G10 currency this December notes Khoon Goh, Senior FX Strategist at ANZ.
Goh comments that although concerns over the potential impact from the US fiscal cliff negotiations proved to be unwarranted , his recommended trades; longing seasonality effects in NZD and shorting JPY, the weakest G10 currency and CAD proved valid with both targets being hit.
The differing stance of central banks has assisted the out performance of NZDJPY, with the RBNZ holding firm while the BoJ in under increasing pressure to adopt yet further quantitative easing. Looking to NZDCAD, Goh notes that while official rates may be higher in Canada than in the US, they remain below those in NZD and writes, "Markets reacted to (soon to depart) BOC Governor Carney's comments on "low for long" rates and the benefits of coordinated policy. His noted concern over risks towards Canadian growth from US Fiscal Cliff negotiations also tempered CAD gains against a generally soft USD."
Goh comments that although concerns over the potential impact from the US fiscal cliff negotiations proved to be unwarranted , his recommended trades; longing seasonality effects in NZD and shorting JPY, the weakest G10 currency and CAD proved valid with both targets being hit.
The differing stance of central banks has assisted the out performance of NZDJPY, with the RBNZ holding firm while the BoJ in under increasing pressure to adopt yet further quantitative easing. Looking to NZDCAD, Goh notes that while official rates may be higher in Canada than in the US, they remain below those in NZD and writes, "Markets reacted to (soon to depart) BOC Governor Carney's comments on "low for long" rates and the benefits of coordinated policy. His noted concern over risks towards Canadian growth from US Fiscal Cliff negotiations also tempered CAD gains against a generally soft USD."
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