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NZD/USD: Overhang of extremely large long positions - Westpac

NZD/USD reversed lower this month, mainly due to a rebound in the US dollar, but also due to expectations the RBNZ would sound more dovish at it MPS, explains Imre Speizer, Research Analyst at Westpac.

Key Quotes

“Those expectations were dashed, with the RBNZ delivering a largely unchanged press release and OCR forecast.”

“So now we’re back to watching the US dollar (and risk sentiment), but there is still the overhang of extremely large long NZD/USD positions, according to the CFTC, to clear.”

“We thus adopt a negative outlook for the week ahead, targeting sub-0.73.”

GBP: Trading in a volatile trajectory – BBH

Sterling posted a key reversal against the dollar on August 3 by making new highs (a little above $1.3265) and then dropping through and closing below
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US: Economy to take cues from macro data - BBH

The US reports several economic reports, but what has emerged as a consensus among economists is unlikely to be changed by the data, according to Marc
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