Trade of the week from Mitsubishi UFJ
MUFG recommends selling NZD/RUB from 43.900 with a target of 43.00 and a stop at 44.30 in its weekly FX pick.
“We are recommending a short NZD/RUB trade idea. Downside risks for the NZD have opened up in the near-term after the RBNZ almost doubled plans for QE to NZD60 billion and signaled clearly that they are considering implementing negative rates when financial institutions are operationally ready.
“We are encouraged by recent price action in the oil market, which appears to be bottoming out. It helps to provide a firmer foundation for RUB strength. At the same time, RUB volatility continues to normalize after spiking higher in March,” they wrote.