Broker of the Week Oanda - Read Full Review

Free Top Brokers Comparison Service


NZD/USD to continue tracking to stronger levels as the economy rebounds – CIBC


After consolidation through mid-2020, much of it related to caution over impacts of containing the virus, NZD/USD performed strongly in the last two months of the year. Economists at CIBC Capital Markets look for further strength in the kiwi amidst a broadly weaker USD and economic recovery.

Key quotes

“One point of caution is regarding the RBNZ’s attitude towards the stronger currency. The bank has previously raised the notion of using tools to slow the currency’s ascent. Having walked the market back from expectations of negative cash rates through comments at their November meeting, we expect we may hear the topic raised again at the first RBNZ meeting of the year in late February.”

“Global reflation confidence is buoyant, but on that which is related to vaccines, we note that New Zealand is adopting a ‘wait-and-see’ approach, i.e. not beginning vaccinations for some time. The success of that approach is uncertain.”

“The economy has weathered the virus challenges well and recovery is underway, though a continued shut-off from the rest of the world may be a future challenge. We forecast gains for the NZD against the USD, but anticipate some underperformance against the AUD.”

“Q1 2021: 0.73 | Q2 2021: 0.74”



Source link

We will be happy to hear your thoughts

Leave a reply

Trading foreign exchange on margin carries a HIGH LEVEL OF RISK, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose.

Advertiser Disclosure: helps investors across the globe by spending over hours each month testing and researching online brokers.

How do we make money? Our partners compensate us through paid advertising.

While partners may pay to provide offers or be featured, e.g. exclusive offers, they cannot pay to alter our recommendations, advice, ratings, or any other content throughout the site.

Furthermore, our content and research teams do not participate in any advertising planning nor are they permitted access to advertising campaign data.

Disclaimer: It is our organization’s primary mission to provide reviews, commentary, and analysis that are unbiased and objective.

While has some data verified by industry participants, it can vary from time to time.

Operating as an online business, this site may be compensated through third-party advertisers.

Our receipt of such compensation shall not be construed as an endorsement or recommendation by, nor shall it bias our reviews, analysis, and opinions.

Best Forex Brokers Reviews
Reset Password
Compare items
  • Total (0)