0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Mixed
Wall Street
Bullish
Gold
Mixed
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bearish
More View more
Real Time News
  • Emotions are often a key driving force behind #FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here:https://t.co/eILWbFgHRE https://t.co/MgazZpwcCd
  • The price of #oil clears the July high ($42.51) ahead of the #OPEC meeting as US crude output sits at its lowest level since 2018. Get your #commodities update from @DavidJSong here: https://t.co/Djbk1HzZmK https://t.co/Oqirlc3r9T
  • The price of #oil clears the July high ($42.51) ahead of the #OPEC meeting as US crude output sits at its lowest level since 2018. Get your #commodities update from @DavidJSong here: https://t.co/w47LH1XXRX https://t.co/vu5veuWOmi
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/5uSWKoLkd6 https://t.co/O55A015115
  • Last week, $EURUSD rallied to an over two – year high then declined after. Will the price hit a new high in the coming days? Get your #currencies update from @malkudsi here: https://t.co/nfBSZRPSv9 https://t.co/gLbyPxb0ic
  • IG Client Sentiment hints that the Dow Jones and crude oil prices may accelerate higher while USD/CAD resumes its dominant downtrend. What are key technical levels to watch for? Find out from @ddubrovskyFX here: https://t.co/qF1WlKvcxZ https://t.co/uzJ54UP9a2
  • The New Zealand Dollar may extend its surge from yearly lows as it tentatively signals a cyclical upturn. NZD/USD, NZD/JPY rates poised for further gains. Get your market update from @DanielGMoss here: https://t.co/vrOuFkvWpX https://t.co/6Rr8v6nUJ7
  • The British Pound may come under fire as uncertainty about Brexit continues to curb GBP’s enthusiasm ahead of the release of preliminary, Q2 UK GDP data. Get your #currencies update from @ZabelinDimitri here: https://t.co/CDECevj4wd https://t.co/L0Z7188Kd8
  • Copper prices seem to have stalled just shy of key chart resistance as geopolitical tensions weigh on the global-growth proxy. Get your copper market update from @ddubrovskyFX here:https://t.co/qseySE5dWP https://t.co/72MrosQoy5
  • #Gold prices put in a massive breakout in the first four days of this week, with a sizable pullback showing up on Friday. But will that deter Gold bulls? Get your #metals update from @JStanleyFX here: https://t.co/R0ykWq52Lc https://t.co/bYDNaLEvPx
NZD/USD Prices May Fall on Swedish Election and as ECB Sinks Euro

NZD/USD Prices May Fall on Swedish Election and as ECB Sinks Euro

2018-09-07 22:00:00
Daniel Dubrovsky, Analyst
Share:
Please add a description for the image.

New Zealand Dollar Fundamental Forecast: Bearish

NZD Fundamental Outlook – Swedish Election, ECB, EUR/USD, NZD/USD, Trade Wars

  • Pro-risk New Zealand Dollar depreciated as emerging markets flirted bear market territory
  • Swedish election could reduce the urgency for ECB to hike in 2019, sending EUR/USD lower
  • China vulnerable to US tariffs, Japan could be next. Trade war fears could hurt NZD/USD

Have a question about what’s in store for New Zealand Dollar next week? Join a DailyFX Trading Q&A Webinarto ask it live!

The pro-risk New Zealand Dollar headed for another week of declines, depreciating against its major counterparts as trade war fears weighed on global benchmark stocks such as the S&P 500. Emerging markets were also pressured as they flirted with bear market territory. The MSCI Emerging Markets ETF index dropped almost 20 percent from its peak back in January.

Next week offers a plethora of event risk for NZD, though most of it does not stem from home. New Zealand’s economic docket is rather lackluster, there may be some near-term volatility on credit card spending data. In the meantime, RBNZ dovish monetary policy bets could brew. Overnight index swaps are pricing in a 20% chance of a cut by February 2019.

The focus rather could stem from more political and trade war risks. In the case of the former, markets will be closely watching the Swedish election over the weekend. There, Eurosceptic nationalism could find a voice in the new cabinet which poses a risk to EUR/USD and stocks. The nation bloc is already pressured to a certain extent by economic nationalism from Italy.

An outcome that results in the Eurosceptic Swedish Democrats gaining in popularity could also potentially reduce urgency for the ECB to raise rates in 2019. The central bank’s next interest rate announcement with updated economic projections is on Thursday. If the Euro falls on a more cautious ECB, then USD could quickly find itself rallying at its expense. This could thus pressure Kiwi Dollar lower.

Threats of trade wars are still prominent and may continue weighing on emerging markets and stocks. At the time of this writing, the hearing period for US tariffs on Chinese goods ended. The Trump administration could very well pursue additional $200b in levies on China. Recently, it was reported that Mr. Trump may target Japan next. Neither scenario bodes well for the sentiment-sensitive New Zealand Dollar.

The fundamental NZD/USD forecast remains bearish.

--- Written by Daniel Dubrovsky, Junior Currency Analyst for DailyFX.com

To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter

Check out our 3Q forecasts for the US Dollar and Equities in the DailyFX Trading Guides page

FX Trading Resources

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.