by Chris Becker
While the world is literally ending as Satan himself takes the Republican Party nomination, risk markets are moving to new highs on more speculation that stimulus is forthcoming from allcomers, even the US as corporate earnings do better than expected. Its been a great reflation since the Brexit referendum that saw monumental amounts of ephemeral monies disappear into the ether, now magically reappearing on any whiff of central bank action.
Kiwi weakening is the trade to watch as it goes below the 70 handle against USD on the back of the poor economic outlook given by the RBNZ. The Aussie dollar is likely to follow with a faster breakdown soon with a rate cut for August definitely on the cards:
