NZD / USD struggles to strengthen US dollar despite high inflation expectations of Reserve Bank of New Zealand

At 0.6658, the NZD / USD fell 0.17% on the day as the greenback continues to dominate the top of the forex leaderboard. On a time basis, the US dollar is ahead while commodity currencies are behind. “CPI inflationary pressures remain strong in the short term, which should be reflected in rent and grocery prices next week,” ANZ Bank analysts said earlier. This should eventually take heat away from the CPI. ”

Meanwhile, the market is increasing overnight volatility as it does not move the needle and instead the US consumer price index heats up, leading to bilateral price behavior on New York Day. In , the data was accompanied by a very positive comment from Federal Reserve voting member James Bullard.

His rhetoric caused a wave of bets on aggressive rate hikes. Bullard told Bloomberg that he hopes to raise 100 basis points by July and can consider raising rates between meetings. This has led some Fd watchers to talk about rate hikes prior to the March meeting. Interest rate futures rose 50 basis points next month, shifting to a above-average possibility of tightening more than 160 basis points by the end of the year.

According to data on Thursday, , the US consumer price index rose 7.5% year-on-year in January, surpassing 6% for the fourth straight month, slightly above economists’ forecast of 7.3%. rice field. As a result, yields on US Treasuries soared and the dollar soared to a five-week high of ¥ 116.34. Kiwi was exhausted for part of the day on the flight to the merchandise, but soon turned around and under pressure after Bullard appeared. The New Zealand dollar fell about 0.3% each in the morning trading.