- Analytics
- News and Tools
- Market News
- NZD: Constructive on NZD heading into year end; scope for a position squeeze - CIBC
NZD: Constructive on NZD heading into year end; scope for a position squeeze - CIBC
CIBC Research discusses NZD outlook and adopts a tactical bullish bias going into year-end.
"The RBNZ may be on hold for now, but we still expect the Bank to ease again sometime in mid-2020, as growth forecasts appear too optimistic in light of regional business sentiment. In addition, anticipated changes in bank capital legislation that should come into effect in April 2020 will likely tighten credit conditions, thereby reducing the effects of past cuts. Despite a more dovish RBNZ in the medium-term, we are constructive on the NZD heading into the end of the year. Positioning in NZD is extremely short, and a less dovish Bank will likely lead to a position squeeze going forward. Based on excessive short positioning, we continue to see the NZD as an outperformer in the coming months," CIBC adds.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
