U.S. Urges Japan on Monetary Policy as Yen Volatility Raises Market Concerns 
Wall Street Analysts Weigh in on Latest NFP Data 
OCBC Raises Gold Price Forecast to $5,600 as Structural Demand and Uncertainty Persist 
China’s Growth Faces Structural Challenges Amid Doubts Over Data 
Oil Prices Dip Slightly Amid Focus on Russian Sanctions and U.S. Inflation Data 
Lithium Market Poised for Recovery Amid Supply Cuts and Rising Demand 
Japan Declines Comment on BOJ’s Absence From Global Support Statement for Fed Chair Powell. Source: Asturio Cantabrio, CC BY-SA 4.0, via Wikimedia Commons 
Global Markets React to Strong U.S. Jobs Data and Rising Yields 
US Gas Market Poised for Supercycle: Bernstein Analysts 
Energy Sector Outlook 2025: AI's Role and Market Dynamics 
UBS Projects Mixed Market Outlook for 2025 Amid Trump Policy Uncertainty 
U.S. Stocks vs. Bonds: Are Diverging Valuations Signaling a Shift? 
Our RBNZ outlook (on hold throughout 2018) is anchoring short-maturity interest rates and should keep 2yr swap rates in a 2.10% to 2.50% range, as long as inflation remains below 2%.
While we pair EUR vs NZD to neutralize the risk to EURUSD from a further repricing of the Fed. The RBNZ is an unlikely candidate to signal tighter policy as the slowdown in migration intensifies the downturn in housing and argues against a policy response to upside inflation risks from minimum wage increase etc. The 3m window KO halves the premium compared to a digital call.
In Sweden, the prospects of a policy pivot were delayed not derailed this year. EURSEK is currently overshooting cyclicals by over 4% the most since 2010. The rebound in inflation to 2.0% in November reduces the risk of the central bank extending QE again next week (this was 0.3% ppt higher than the Riksbank's estimate), although it could still push back the lift-off point for rates by a quarter to 3Q’18 in order to better align itself with the ECB’s extension of QE through September.
Long a 9m 1.80 EURNZD digital call with a 3m 1.80 window KO. Paid 17.5%. Marked at 19.04%.
Currency Strength Index: FxWirePro's hourly EUR spot index has shown 78 (which is bullish), while hourly NZD spot index was at 62 (bearish), USD at 56 (bullish) while articulating at 07:05 GMT. For more details on the index, please refer below weblink:
http://www.fxwirepro.com/currencyindex
FxWirePro launches Absolute Return Managed Program. For more details, visit:
