FX Daily: RBNZ Joins the Hawks

ING reports a hawkish shift in global markets, led by a surprisingly aggressive rate forecast from the RBNZ and expectations of a firming Fed bias. Meanwhile, Hungary moves toward easing and Uzbekistan's resumed gold sales bolster the soum.

Key Takeaways

• 1.The RBNZ shifted to a hawkish stance, narrowly voting to hold rates at 2.25% but aggressively revising its terminal rate forecast to 3.25%.
• 2.The US dollar is expected to remain supported ahead of the June FOMC meeting as inflation moves further from targets and a hawkish tide grows.
• 3.The National Bank of Hungary held rates at 6.25% but signaled a dovish tilt, opening the door for potential rate cuts in June.

Table of Contents

• USD: Hawkish tide
• EUR: Trading on the soft side
• HUF: The door opens to change
• UZS: Restart of gold exports to further reinforce the soum
• Author
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