Hawkish RBNZ makes NZD Longs look attractive.

A hawkish RBNZ meeting has strengthend NZD, as it brings into question whether the first cut will be held off until next year. And makes NZD Longs a very attractive option. Particularly as a 'risk on: short JPY Or CHF trade. But also NZD CAD is very viable considering the soft Canadian CPI and 'dovish' BOC. but it's worth noting the NZD CAD chart is at daily resistance. And although I think it's likely to break through, it may be prudent to wait for that to happen before shorting the CAD.

My AUD JPY is still in play, and although I stand by the reasoning for the trade, I currently feel like I'm sat in a broken down car watching other opportunities pass by. But if NZD JPY is going to continue up, I think it's likely AUD JPY will go with it.

In other news, 'still hot' UK inflation keeps the pressure on the BOE. Govoner Bailey sounded quite dovish yesterday, but today's data keeps August as the likely date for the first cut.

Feel free to email any questions: johnelfedforexblog@gmail.com