NZDJPY - The New FX Safe haven (Rate Hike inbound!)
NZD has been a great currency to follow and trade.
A rate hike is expected in 14 hours from now and we are well positioned in Long positions against the JPY and the GBP.
NEWS:
(Bloomberg) -- New Zealand’s central bank is set to raise interest rates for a third straight meeting and may signal a quicker pace of tightening ahead as it seeks to rein in the fastest inflation in more than 30 years.
The Reserve Bank will lift its official cash rate by 25 basis points to 1% Wednesday in Wellington, according to 18 of 20 economists surveyed by Bloomberg. Two predict a 50-point move. The Monetary Policy Committee may project an OCR of about 2.5% by year-end, a more aggressive upward path than previously forecast that would require a hike at each policy meeting in 2022.
“The RBNZ has a big job to do, and we would not rule out a 50 basis-point hike,” said Sharon Zollner, chief New Zealand economist at ANZ Bank in Auckland. However, steady steps remain appropriate “given the risks are decidedly to the downside for economic growth, even if inflation is to the upside,” she said.
New Zealand could be facing a wage-price spiral as a labor shortage supports workers’ demands for higher pay to compensate for faster inflation. At the same time, the country’s surging omicron outbreak is hurting business and consumer confidence and clouding the economic outlook.
New Zealand, definitely in our liking.
One Love,
the FXPROFESSOR
A rate hike is expected in 14 hours from now and we are well positioned in Long positions against the JPY and the GBP.
NEWS:
(Bloomberg) -- New Zealand’s central bank is set to raise interest rates for a third straight meeting and may signal a quicker pace of tightening ahead as it seeks to rein in the fastest inflation in more than 30 years.
The Reserve Bank will lift its official cash rate by 25 basis points to 1% Wednesday in Wellington, according to 18 of 20 economists surveyed by Bloomberg. Two predict a 50-point move. The Monetary Policy Committee may project an OCR of about 2.5% by year-end, a more aggressive upward path than previously forecast that would require a hike at each policy meeting in 2022.
“The RBNZ has a big job to do, and we would not rule out a 50 basis-point hike,” said Sharon Zollner, chief New Zealand economist at ANZ Bank in Auckland. However, steady steps remain appropriate “given the risks are decidedly to the downside for economic growth, even if inflation is to the upside,” she said.
New Zealand could be facing a wage-price spiral as a labor shortage supports workers’ demands for higher pay to compensate for faster inflation. At the same time, the country’s surging omicron outbreak is hurting business and consumer confidence and clouding the economic outlook.
New Zealand, definitely in our liking.
One Love,
the FXPROFESSOR
CRGPT Token : Join the Crypto AI Revolution 🌟 cryptogpt.io/
🌐 Public Telegram: t.me/fxprofessor88 💎
🌐 Public Telegram: t.me/fxprofessor88 💎
Publikasi terkait
Pernyataan Penyangkalan
Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.