ECB’s Cipollone Backs Digital Euro as Europe Pushes for Payment System Independence 
Bank of England Expected to Hold Interest Rates at 3.75% as Inflation Remains Elevated 
MAS Holds Monetary Policy Steady as Strong Growth Raises Inflation Risks 
US Futures Rise as Investors Eye Earnings, Inflation Data, and Wildfire Impacts 
Gold Prices Slide as Rate Cut Prospects Diminish; Copper Gains on China Stimulus Hopes 
UBS Predicts Potential Fed Rate Cut Amid Strong US Economic Data 
RBA Expected to Raise Interest Rates by 25 Basis Points in February, ANZ Forecast Says 
Global Markets React to Strong U.S. Jobs Data and Rising Yields 
US Gas Market Poised for Supercycle: Bernstein Analysts 
Bank of Japan Signals Cautious Path Toward Further Rate Hikes Amid Yen Weakness 
S&P 500 Relies on Tech for Growth in Q4 2024, Says Barclays 
Bank of Canada Holds Interest Rate at 2.25% Amid Trade and Global Uncertainty 
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
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