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29 Jul 2015
No surprises at Wheeler’s speech – BTMU
FXStreet (Edinburgh) - Derek Halpenny, European Head of GMR at BTMU, reviewed the recent speech by RBNZ Governor Wheeler.
Key Quotes
“In our view his comments were more about the RBNZ in a sense confirming what is currently priced in the market rather than encouraging the market to price in additional easing”.
“The 90-day bill future for the end of the year implies one cut being fully priced and not much more”.
“So the Wheeler speech has merely confirmed market expectations. So it’s no surprise that the New Zealand dollar has only gained modestly”.
“With at least another cut coming we would still see scope for the New Zealand dollar to weaken further – however, our depreciation profile is much flatter than before in recognition of that fact that further easing is priced and that declines in NZD/USD going forward is more about US Fed policy than RBNZ easing”.
Key Quotes
“In our view his comments were more about the RBNZ in a sense confirming what is currently priced in the market rather than encouraging the market to price in additional easing”.
“The 90-day bill future for the end of the year implies one cut being fully priced and not much more”.
“So the Wheeler speech has merely confirmed market expectations. So it’s no surprise that the New Zealand dollar has only gained modestly”.
“With at least another cut coming we would still see scope for the New Zealand dollar to weaken further – however, our depreciation profile is much flatter than before in recognition of that fact that further easing is priced and that declines in NZD/USD going forward is more about US Fed policy than RBNZ easing”.