Home BUSINESS / INVESTING NZD and SEK to benefit ahead of central bank meetings – MUFG

NZD and SEK to benefit ahead of central bank meetings – MUFG

by Admin Webtingale
NZD and SEK to benefit ahead of central bank meetings – MUFG

Analysts at MUFG Bank, point out that external drivers are more supportive of the New Zealand Dollar and the Swedish Krona ahead of the Reserve Bank of New Zealand (RBNZ) and Riksbank meetings.

Key Quotes:

“NZD has benefitted from recent easing of global hard landing fears & relatively hawkish repricing of RBNZ rate hike expectations.”

“The NZD and SEK should both continue to benefit from the recent improvement in global investor risk sentiment. The SEK would benefit more if the Riksbank signalled as well that rates will have to peak much higher than 2.50%.”

“The RBNZ (Wed) and Riksbank (Thurs) will be the latest G10 central banks to update their monetary policies in the week ahead. The RBNZ are expected to deliver a sixth consecutive 50bps rate hike lifting the key policy rate up to 4.00%. Market participants are pricing in around a 40% probability that the RBNZ could even deliver a larger 75bps hike following much stronger inflation and wage growth in Q3. The RBNZ’s next policy meeting is not until 22nd February which could encourage the RBNZ to deliver a larger, more-front loaded hike in the week ahead. The Riksbank has been lagging other G10 central banks in tightening policy and is now playing catch up after delivering a 100bp hike in September. The Riksbank is expected to deliver a 75bps hike on Thursday while another 100bps hike can’t be ruled out.”


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

READ:  How to prioritize retention in 2023

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Read More

Share on

You may also like

Leave a Comment