Currency in Play: GBP/NZD
Position: Long (Buy)
Entry Price: 2.6614
Stop Loss: 2.6200
Profit Target: 2.7614
Reserve Bank of New Zealand is expected to cut its interest rate by 100bp to 4.00% at 20:00 GMT 28 January 2009. Market already price in 125bp cut.
If the cut is bigger than consensus it could prove to be bearish to the NZD. However Sterling itself has come under pressure recently against most major currencies. As at the time of the posting, there is already sign of reversal happening (almost 200 pips down from its high). It would interesting to watch the reaction of the Sterling against the NZ Dollar if the cut is more than the consensus estimate.
We'll see if it can hit the profit target. If it happen it would be a personal record as I had targeted 1000 pips.
1 comment:
Wah...you're playing such exotic pair huh... Good luck!
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