NZD – JPY – CAD: BNP

From the FXWW Chatroom: RBNZ do not strike a dovish down. They downplayed weak Q1 GDP print and while adding some language on the currency, fall short of saying a lower NZD “is needed”. NZD broadly supported as a result. We remain short NZDCAD (from 0.9580, target 0.9250, stop loss 0.9730).  #NZD

{JN} Weekly Japanese MoF flow data show Japanese investors buying JPY 1.09trn and 367bn of foreign bonds and stocks respectively last week. This markets the 7th week of consecutive outflows following the conclusion of the French election.  #JPY

{CA} Canadian retail sales data released today. Several BoC speakers, including Governor Poloz, have recently been teeing up the market for a more hawkish shift. As a result, rates markets have moved to now price a 25bp BoC rate hike by year-end. Today’s retail sales data and tomorrow’s CPI release will be important in validating that shift in pricing.

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