NZ Traders Making Significant Returns
15th May 2008
NZ Traders Making Significant Returns From Falling Dollar
New Zealand exporters are not the only ones benefiting from the falling New Zealand dollar.
According to Sargon Elias, General Manager, CMC Markets New Zealand a number of their clients involved in online FX trading have made significant profit in the last 24 hours as they had gone short on the New Zealand dollar.
“Our clients have obviously been watching the trends and various announcements around housing and retail figures closely because no-one has taken a long position on the New Zealand dollar.”
Elias believes that latest retail figures will mean Reserve Bank Governor Allan Bollard will cut interest rates if not in July definitely in September which is sooner than may expected.
“He has got the slow down he was looking for in housing and spending so he has room to move but the downside of falling dollar is that already high fuel prices will continue to climb and that has the potential to impact on inflation.”
As far as FX traders are concerned Elias expects them to continue to go short on NZD. “We believe the dollar will continue to drop as market data confirms the economic slow down.”
About CMC Markets
CMC Markets New Zealand Limited, an online trading company, is the largest share, index, sector and margin FX CFD provider in New Zealand. CMC Markets has operations in New Zealand, Australia, Canada, China, Germany, Hong Kong, Singapore, Sweden the UK and the US with clients in over 55 countries worldwide. It aims to offer the most cost effective trading solutions to retail investors.
Released on behalf of CMC Markets by Donovan Boyd Communications Ltd. For further information contact: