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NZD & JPY Outperform

FOREX

The BBDXY is a little below late Tuesday levels, sitting comfortably within the week-to-date range.

  • NZD outperforms G10 FX peers, despite softer-than-expected headline NZ CPI.
  • Some of the underlying CPI measures were a touch firmer than expected, which, when coupled with bearish sentiment towards the NZD, particularly vs. AUD, facilitated the kiwi rally.
  • This came even as several sell-side names pencilled in earlier/more aggressive RBNZ cutting cycles.
  • GBP is off best levels vs. most peers after initial modest knee-jerk gains on the back of slightly firmer-than-expected domestic CPI data.
  • JPY demand became evident in late Tokyo trade, with USD/JPY back below Y158 as a result. No clear driver there.
  • Fedspeak (Waller & Barkin) & final Eurozone CPI data headlines the macro calendar today. U.S. housing starts and building permits data is also due.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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