-
Daily FX Strategy: Race to the bottom
Caught in the middle of the US-China trade war, New Zealand’s Reserve Bank of New Zealand surprised last night with a 50 basis point rate cut. The policy rate is now at a record low of 1.00% and the market prices another 50bp within the next three months. It seems the RBNZ feels the need to get to the lower bound as quickly as possible. That will encourage thoughts that other central banks, such as the ECB, will not hang around when they next meet. Back to the China story, today’s USD/CNY fixing at 6.9996 suggests the People's Bank of China is happy to see the market set the renminbi’s rate and a fixing above ... (full story)