May 09, 2022 - 12:41 PM 267 views
The US dollar
continues its winning stroke prior to the release of the key US CPI data this
week, whereas the Kiwi in 2022 is still fighting at its low level. ANZ bank
reported that economists hoped that stronger than predicted inflation would
boost the greenback.
The truth of Volatility bites
this week’s data schedule, the US CPI is expected to top the list, and whereas
the NZ inflation forecast data is on due, it is extremely hard to predict any
decline in non-generic volatility. Threats to US CPI appear binary, with
markets predicting a slight moderation of 8.5% to 8.1%. be gently soothing, but
a boost would rejuvenate the estimations of the 75 basis points (bps) raise and
perhaps give the USD a hike.
The idea of
accompanied global tightening policies may continue, but when the reality of
unstable volatility bites, it feels like a forgotten fantasy.