IronFX Daily Commentary by Charalambos Pissouros | 10/08/2016
August 10, 2016 8:46 am
RBNZ to pull the trigger, but will it weaken NZD? • The RBNZ rate decision will be announced during the Asian morning Thursday. • Expectations for a rate cut are extremely high. Market pricing suggests a 100% probability for a 25bps cut. • If the Bank cuts rates only by 25bps, this is likely to disappoint those expect more and may cause NZD to spike higher. • In order for NZD to weaken substantially, the RBNZ has to deliver more than is currently priced in. • A very strong easing bias and/or a rate cut greater than 25bps are needed for NZD to come under selling pressure.
Today: • Norway: CPI for Jul. is exp. to accelerate, which could support NOK. • US: JOLTS job openings for Jun. are exp. to rise.
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RBNZ to pull the trigger, but will it weaken NZD?
• The RBNZ rate decision will be announced during the Asian morning Thursday.
• Expectations for a rate cut are extremely high. Market pricing suggests a 100% probability for a 25bps cut.
• If the Bank cuts rates only by 25bps, this is likely to disappoint those expect more and may cause NZD to spike higher.
• In order for NZD to weaken substantially, the RBNZ has to deliver more than is currently priced in.
• A very strong easing bias and/or a rate cut greater than 25bps are needed for NZD to come under selling pressure.
Today:
• Norway: CPI for Jul. is exp. to accelerate, which could support NOK.
• US: JOLTS job openings for Jun. are exp. to rise.
Join us for more technical and fundamental analysis: http://www.ironfx.com
To get the latest Forex trading news you should:
• Download the IronFX Research app: http://goo.gl/jhQIxO
• Like us on Facebook: https://www.facebook.com/IronFX
• Follow us on Instagram: https://www.instagram.com/ironfx
• Follow us on LinkedIn: https://goo.gl/wSEbPN
• Follow us on Twitter: https://twitter.com/IronFXGlobal
• Circle us on Google+: https://www.google.com/+Ironfxglobal
• Subscribe to our Channel: http://bit.ly/1foFmCU
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