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Flash: New Zealand strategy profile – Westpac

FXstreet.com (Barcelona) - According to Global FX Strategist Sean Callow at Westpac, “The long-awaited NZD/USD unwind of extremely long speculative positioning appears to be underway – the breakdown heralds a further decline to 0.7800 during the weeks ahead.”

Finally, the NZ curve will find it difficult to steepen any further as QE-adjustment fears subside. Ultimately, “We favor a week-ahead range of 105bp-115bp for the 2-10yr.” Callow adds.

With regards to NZ swaps, there should be enough residual concern to push NZ rates slightly higher this week. 2yr swaps could reach 3.00% but that should be the extent of it given the RBNZ is on hold until next year. 10yr swaps should remain below 4.10%, off shore inflows into NZGB’s strong at present.

EUR/GBP finds resistance at 0.8565

The shared currency has managed to accomplish slight gains versus the pound on Monday despite the low volume and lack of interest. EUR/GBP bounced from the 100-hour SMA around 0.8538 during the European session and climbed to a high of 0.8565 before finding resistance.
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Flash: FX majors face subdued trading session – UBS

UBS Strategists, Gareth Berry and Geoffrey Yu take a technical perspective at today's majors and outline the technical positions.
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