Societe Generale Cross Asset Strategy Research discusses the near-term outlook for NZD in light of the latest political developments
"The main FX mover overnight was the NZD, down as New Zealand First leader Winston Peters backed Labour to form a government.
There are details to iron out, but markets will remain nervous about what this means for monetary policy, with Mr Peters favouring a Singapore-style net effective exchange rate target," SocGen argues.
"There’s nothing good for the NZD until clarity returns, and we still like longs in AUD/NZD, and CAD/NZD," SocGen advises.
Source: Societe Generale Cross Asset ResearchOriginal Article
