Phil Borkin, Senior Macro Strategist at ANZ, suggests that the market has quite rightly pared back expectations for an RBNZ OCR cut following the Q2 CPI release, which was stronger (both at the headline level and in spirit) to what ANZ was expecting. Key Quotes “Quite naturally, IRS receivers are likely to be more hesitant here, which is only likely to exacerbate thin liquidity in a market still cautious about funding market pressures (even though BKBM has been setting lower recently). But with downside growth risks remaining and the NZD potentially on the cusp of unwinding recent weakness, we think the market can keep some odds of a cut priced in (perhaps around 5%). And even if you don’t believe that, hikes still look some way away, which should limit any back-up in yields.” “The NZGB curve has remained range-bound on an asset swap basis, which we think will continue for now. There is roughly another $200k of DV01 to absorb tomorrow with the next 2037s tender, but we think it will go better than the last this bond was tendered.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next EUR/GBP: On a strong footing – Danske Bank FX Street 5 years Phil Borkin, Senior Macro Strategist at ANZ, suggests that the market has quite rightly pared back expectations for an RBNZ OCR cut following the Q2 CPI release, which was stronger (both at the headline level and in spirit) to what ANZ was expecting. Key Quotes "Quite naturally, IRS receivers are likely to be more hesitant here, which is only likely to exacerbate thin liquidity in a market still cautious about funding market pressures (even though BKBM has been setting lower recently). But with downside growth risks remaining and the NZD potentially on the cusp of unwinding recent weakness, we think… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
