The Week Ahead: Relative Value Opportunities Amid Near-term USD Strength

This report outlines investment strategies for Forex and Commodities, anticipating a neutral Fed policy path that will ultimately weaken the USD. It highlights yield pickup opportunities in various currency pairs including AUDNZD, EURSEK, and USDJPY.

Key Takeaways

• 1.Fed policy rates expected to remain unchanged this year, challenging market tightening expectations and supporting a medium-term USD pullback.
• 2.RBNZ is expected to deliver a 25bps rate hike in the upcoming meeting, given strong GDP data and inflationary pressure.

Table of Contents

• The week ahead: Relative value opportunities amid near-term USD strength
• Yield pickup opportunities of the week
• Comments on select currencies and commodities
• Data calendar

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial