While the housing downturn will be fairly mild in the US, it will be more severe abroad. Continue to favor bonds of countries whose housing fundamentals will limit rate hikes.
This week, we look at the latest data releases in the G10, along with implications for all the major currencies.
Commodity currencies have been rather resilient, despite the broad rise in the dollar this year. In our view, we are about to experience a big rotation in commodity currency market performance at the crosses, from NZD, to CAD and…
In a widely anticipated move, the RBNZ delivered an outsized 75bp hike and lifted the official cash rate to 4.25%, following five consecutive 50bp increases this year. It also provided guidance for further tightening ahead.…
As expected, the Reserve Bank of New Zealand delivered its fifth consecutive half-point hike on Wednesday, raising the Official Cash Rate (OCR) to 3.5%. In addition, the Monetary Policy Committee indicated that economic…
The DXY index has dropped from a high of 108.54 in July to 106.47 today and is churning around its 50-day moving average. As both bulls and bears battle the next move in the dollar, one currency that is likely to lag its G10…
Listen to a short summary of this report. Executive Summary Chart 1The Dollar Has Broken Below The First Line Of Support The softer CPI print in the US boosted growth plays and pushed the DXY index below…
As expected, the Reserve Bank of New Zealand hiked interest rates by 50bps for the third consecutive time on Wednesday, bringing the Official Cash Rate to 2.5%. The MPC also signaled an intention to continue tightening monetary…
As expected, the Reserve Bank of New Zealand hiked interest rates by 50 basis points on Wednesday, bringing the Official Cash Rate (OCR) to a 6-year high of 2%. This move marks the second consecutive 50bps hike and the fifth…
Listen to a short summary of this report. Executive Summary The Dollar Likes Volatility Uncertainty about Fed policy has supercharged volatility in bond markets, and correspondingly, USD demand (Feature…