FXstreet.com (Barcelona) - The risk rally looks to be on fairly shaky foundations, says Mike Jones, currency strategist at Bank of New Zealand. As such, "it will need more policy stimulus to continue" the analyst notes, adding that it's all up to the world’s central banks now.
On a morning report, Mike observes: "Hopes are high that both the ECB and the FOMC will this week announce additional policy measures to shore up the global economy. The more aggressive the stimulus, the more the NZD could rise. Conversely, if investors end up disappointed, a potentially heavy toll could be taken on the currency"
For now, Mr. Jones thinks "short-term indicators remain indicative of further NZD/USD strengt, with momentum factors positive, and Friday’s break through 0.8080 resistance a bullish signal." He tips that near-term test of 0.8200 is possible.
On a morning report, Mike observes: "Hopes are high that both the ECB and the FOMC will this week announce additional policy measures to shore up the global economy. The more aggressive the stimulus, the more the NZD could rise. Conversely, if investors end up disappointed, a potentially heavy toll could be taken on the currency"
For now, Mr. Jones thinks "short-term indicators remain indicative of further NZD/USD strengt, with momentum factors positive, and Friday’s break through 0.8080 resistance a bullish signal." He tips that near-term test of 0.8200 is possible.
