SEK & GBP sit top of G10, while NOK & CAD.....>

FOREX: SEK & GBP sit top of G10, while NOK & CAD register minor losses at the NY

crossover. Volumes have so far remained light with narrow range trade expected

to continue as highlighted by weekly option vols.

- EURUSD 1W option vols indicate an implied move of 61 pips, while GBPUSD 1W is

110 pips.

- More interestingly NZD (88 pips) has a bigger range priced in than AUD (57

pips), as traders factor in the NZ CPI release tomorrow at 2345GMT.

- Barclays note, we and consensus forecast NZ CPI inflation (Wednesday) to print

at 0.3% q/q and 1.7% y/y, hardly alarming in the context of the RBNZ's 1-3%

target band and slightly above the central bank's forecast of 1.6% y/y. RBNZ

Governor Adrian Orr indicated in an interview with Bloomberg last week that it

is not yet clear whether a rate cut in May is warranted. We maintain our view

that a cut at the 8 May meeting is unlikely, given that economic data have not

deteriorated sufficiently to support such urgent action - Q1 labour market data

(released 1 May).