Matt Nolan

The curse of the forecast

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This article came out at 9.30am stating that the New Zealand dollar was going to test $US0.80 again.

Even with an positive surprise in the merchandise trade figures, this is what happened:

nzdusd_1_hourlygif.jpg

Macro-man notices a similar trend with Economist magazine covers.

Update:  If anyone wonders why the dollar is falling, it is because of concerns in the US (we are a carry trade currency, so if something goes wrong in the US people sell our currency and buy US dollars – crazy huh) about some bond issuers.

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  1. New Zealand dollar in decline « The visible hand in economics says:
    August 14, 2008 at 10:11

    […] rates, our dollar might just be coming for a ride. Possibly related posts: (automatically generated)The curse of the forecastRecord Breaking Day for the Dollar, Euro and British PoundMarketBeat : The Dollar’s Renewed […]

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