27 Mar 2014
NZD and GBP to stay firm - JPMorgan
FXStreet (Bali) - Based on monetary policy, John Normand and Meera Chandan, FX Strategists at JP Morgan, expect that all G10 currencies but NZD and GBP are vulnerable this spring.
Key Quotes
"The RBNZ will probably follow through on at least 75bp of the 100bp tightening discounted in the curve, and the sterling money market should probablyreprice in tandem with the US given even more advanced tightening of the UK labour market. (UK wage growth has been trending higher for three consecutive months)."
"No other G10 economy should deliver the cyclical momentum (or carries enough of an inflation bias (Euro area, Canada, Sweden) to justify its rate expectations matching the Fed’s.)"
Key Quotes
"The RBNZ will probably follow through on at least 75bp of the 100bp tightening discounted in the curve, and the sterling money market should probablyreprice in tandem with the US given even more advanced tightening of the UK labour market. (UK wage growth has been trending higher for three consecutive months)."
"No other G10 economy should deliver the cyclical momentum (or carries enough of an inflation bias (Euro area, Canada, Sweden) to justify its rate expectations matching the Fed’s.)"