This is via the folks at eFX.
For bank trade ideas, check out eFX Plus. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. Get it here.
- Goldman Sachs discusses NZD outlook and sees a scope for further gains over the coming weeks.
- "We think two idiosyncratic features are driving NZD outperformance. First, the RBNZ is taking a different approach to many other G10 central banks because it is speeding up the pace of hikes despite forecasting an outright recession in 2023 while others have been slowing down in the face of a deteriorating growth outlook. In essence, this is a high real rate policy, which should support the currency," GS notes.
- "Second, NZD is especially sensitive to US 10-year yields, and has been benefiting from their move down, although this may reverse, as we think too much FCI easing is counterproductive for the Fed," GS adds.
