Mario Draghi is becoming one of currency traders’ few friends.
Euro-area bonds declined, with German 10-year yields rising for a fourth day, as investors considered whether European Central Bank policy makers will introduce unconventional easing measures this week.
Investors should sell the New Zealand dollar against the yen and bet the currency will decline to 59.80, according toStandard Bank Plc.
Standard Bank Plc advised investors to sell the New Zealand dollar against the U.S. dollar, estimating the so-called kiwi will weaken to 68.20 U.S. cents.
Investors should buy the dollar against the yen, speculating the U.S. currency will appreciate to 83.40 yen, Standard Bank Plc said.
The drop in currency volatility to the lowest levels since 2007 is proving a boon to traders able to exploit differences in global interest rates.
Standard Bank Plc advised buying the euro against the yen and the Australian dollar, and also recommended purchasing the U.S. Dollar versus Norway’s krone.
"The decline that we've seen in euro-sterling since Carney made his comments about a potential rate hike have probably been a little more significant than we've seen in the past, without any consolidation or correction."
- Steve Barrow on Jul 17, 2014
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