The New Zealand dollar is at risk of disappointment at the Reserve Bank of New Zealand meeting and the New Zealand economy is likely to slow sharply next year. |
The yen's loss of upside momentum should also come as a relief to the high-yield currency bloc, with a sharp strengthening of the yen perhaps the biggest near-term risk for these currencies. |
There are things going on all over the county this weekend, but not a lot in this area. I just hope people come out, spend the day in Conway and bring their families. They can discover or rediscover everything that's great about Conway. |
We remain long dollar/yen from 116.70 heading into the new year. |
We were short-dollar as our core view is that the Fed ended its tightening cycle on Jan. 31. |
Well, something's got to give. Otherwise Germany will be back to the polls in a few weeks' time. |
While the continued strength of the yen does present a risk to stretched carry positions in high-yield currencies, our near-term expectation is that the yen is unlikely to extend its February gains. |
While the overall composition of growth was good, the headline number was perhaps not sufficiently strong to drive a sustained rally in the yen just yet. |
With the Charles Schumer bill possibly being voted on by the end of this month, now may be a good time to allow greater flexibility. |