Forex Analysis

A Lot of Dust to Cloud September’s MPS

We believe the RBNZ will temper its OCR outlook at Thursday’s Monetary Policy Statement (MPS).

GBP to weaken further, with Scottish indepdence – yet another risk;

Rarely do all parts of the NZ economy move perfectly insynch.

The main change in terms of positioning this week has been the increase in the short JPY and long CAD position.

U.S. Review Q3 Kicks It into High Gear • The factory sector has accelerated,

• The net long USD position rose to $34bn; however as opposed to a long USD market,

Surprise action from the ECB hit the EUR-complex The ECB cut all three rates by 10 basis points through a surprise decision

Reports of ongoing fighting in the Ukraine, threats of fresh sanctions against Russia and

The Swiss remains under the downdraft of the ECB rate cut and it also appears that the Swiss remains

The Yen has clearly rejected a noted range down extension on the charts and

While the Dollar is showing signs of correcting in the early Friday morning action,

All things considered, the Canadian has held up rather impressively in the face of stellar gains in the Dollar this week.