Forex Flash: Market fails to take pre-emptive plunge ahead of RBNZ – UBS
Although the recent news flow continues to point to the need for somewhat tighter conditions in New Zealand, it appears that the market is unwilling to take the plunge on pre-emptive RBNZ moves. Indeed, corporates and hedge funds have been adding to shorts in recent weeks. Clearly, the need to reconcile tighter conditions with 'overvalued' currency has resulted in a hesitant RBNZ, and deterring potential longs in the meantime.
Forex Flash: Is the UK in a triple-dip recession? – Deutsche Bank
One of the main talking points yesterday was a disappointing UK industrial production print. Industrial and Manufacturing Production in the UK fell -1.2% and -1.5%, respectively in January – this fell short of broadly flat expectation. According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “The initial reading is due on the 25th April) and is of the view that the output contraction in Q412 and a high margin of error around his Q113 forecast have raised the prospect of a triple-dip in the UK (i.e. 2008-09, 2011-12 and 2012-13).”