Excerpt from: Forex News
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| July 29, 2010 | | Currency trading on the FX market | The kiwi is lower in forex trading today, thanks to dovish sentiment expressed by the Reserve Bank of New Zealand. RBNZ officials decided to raise the base rate by 25 basis points, putting the benchmark at 3%.
However, this increase was accompanied by a statement that puts a damper on hopes for additional rate increases in the future. GFT's Boris Schlossberg reports in FX360 on what this means for the Down Under currencies in forex trading:
With both the RBA and the RBNZ now likely to remain
stationary well into the fall, as their respective economies absorb the
latest round of monetary tightening, the Aussie and the kiwi may begin
to underperform the other high beta FX currencies as speculative
interest moves elsewhere. Although both commdollars sport relatively
high yields, the lack of any further rate hikes for the foreseeable
future could cap the upside going forward.
| Topic Tags: Boris Schlossberg, currency trading, down under currencies, forex trading, FX360, FX market, kiwi | |
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