TD Securities have put out a trade rec and.....>

KIWI: TD Securities have put out a trade rec and suggest going long GBP/NZD at

current levels, targeting a move to NZ$1.90 and a stop of NZ$1.8445.

- TD note, while all the G10 shows downside growth momentum, the USD, for its

part, falls into the worst quadrant that shows dual deceleration. Even so, NZD

takes top shop in terms of the overall worst ranking and GRMI doesn't help its

ranking this week. We also expect a weak NZ CPI print that could catalyse NZD

downside.

- TD add, for GBP, while it has plenty of Brexit risks to manage, we note this

week's event calendar offers smoother sailing. Furthermore, GBP checks a few

boxes in the desirable (tactical) contrarian trade column, reflecting its weight

in these baskets. It is also trading with a 2% discount to HFFV against the USD.

When we calculate the cross NZD HFFV levels, GBPNZD is trading at a whopping

5.3% discount.