Hi @yniyo. Of course, there is a possibility that we see a more cautious approach, with a 50bp cut and patient stance perhaps lessening any NZD weakness. Remember, markets have priced in a minimum of a 50bp cut as things stand, so wont be a massive shock if they cut. Nonethless, the wider backdrop of rising inflation fears and slower cuts elsewhere could help NZD weaken.
correct me if am wrong but it seems whether its 50 of 75 basis point the NZD will sell off, is there a scenario where the news could send a bullish signal? nice analysis btw and thanks
Hi @yniyo.
Of course, there is a possibility that we see a more cautious approach, with a 50bp cut and patient stance perhaps lessening any NZD weakness. Remember, markets have priced in a minimum of a 50bp cut as things stand, so wont be a massive shock if they cut. Nonethless, the wider backdrop of rising inflation fears and slower cuts elsewhere could help NZD weaken.
@@TheJoshmahony thanks for reply, keep up the good work fundamental analysis, enjoyed it
correct me if am wrong but it seems whether its 50 of 75 basis point the NZD will sell off, is there a scenario where the news could send a bullish signal? nice analysis btw and thanks