SaxoTV

#SaxoStrats - Buying NZDUSD put for downside potential

868 views
December 08, 2015 NZD, ecb, ecb action, ecb draghi, ecb meeting, ecb policy, ecb rate, ecb rate decision, ecb rates, fed, fed chairman, fed chairwoman, fed meeting, fed policy, fed rates, federal, federal policy meeting, federal reserve, federal reserve rate hikes, federalreserve, fomc, fomc meeting, fomc minutes, fomc rates, fomcmeeting, fomcminutes, fomcstatement, foreign exchange, forex, forex buying, forex exchange, forex idea, forex market, forex market overview, forex markets, forex saxo bank, forex strategy, forex trade idea, forex trading, forextrading, fx, fx award, fx crosses, fx forex, fx interbank markets, fx investing, fx market, fx markets, fx options, fx saxo bank, fx spot, fx strategy, fx trade, fx trade idea, fx traders, fx trades, fx trading, fx volatility, fxmarkets, fxoptions, kiwi, kiwi dollar, nzd fall, nzd usd, nzdollar, nzdusd
Ahead of both Reserve Bank of New Zealand and the Federal Open Monetary Committee meetings, Saxo's John Hardy explains why he's looking to buy an NZDUSD put option. 

He says the market is divided on whether the RBNZ is going to cut rates. But Hardy doesn't think the central bank wants a stronger kiwi. 

Meanwhile most analysts are convinced the FOMC will raise rates next week, leading to a potential policy divergence between the two banks which could send the kiwi lower. That's why he's looking for NZDUSD downside potential.

In this #SaxoStrat, John discusses levels and timings.
Strike: 0.6525
Expiry: December 30, 2015
Target: Spot trading below 0.6400

And you can read more about John's trade here.