Riksbank keeps monetary policy unchanged, repo rate likely to be kept on hold going forward

Apr 28, 2020 12:29 pm UTC| Commentary Central Banks

The Swedish central bank, Riksbank, kept its monetary policy unchanged today, as expected. The rate path is flat at 0.0 percent throughout the forecast horizon. Nevertheless, the endpoint of rate path is as early as the...

Euro Still Fragile As EU PMIs Indicate Renewed Weakness – FxWirePro’s EUR/JPY Bearish Hedging Vehicles Productive

Apr 24, 2020 10:55 am UTC| Research & Analysis Insights & Views Central Banks

The IHS Markit Eurozone Manufacturing PMI fell to 33.6 in April of 2020 from 44.5 in March and below market expectations of 39.2, preliminary estimates showed. Figures pointed to the biggest drop in factory activity since...

FxWirePro: Turkish Lira Seems Fragile On CBT’s Surprising Rate Cuts – Uphold USD/TRY Debit Call Spread

Apr 23, 2020 12:33 pm UTC| Research & Analysis Central Banks Insights & Views

Yesterdays CBTs MPC meeting could have gone in one of two ways: we held an original base view that CBT would cut the benchmark rate by 100bp; but we later revised this to 50bp because the lira was weakening exponentially...

FxWirePro: Singapore Extends Lockdown As Well As Fiscal Stimulus – Activate ATM Delta Instruments & RVs

Apr 22, 2020 14:59 pm UTC| Research & Analysis Central Banks Insights & Views

Singapore will extend the circuit breaker ala lockdown by four weeks to 1-June. The sensational headlines will read that Singapore has lost control of the fight on Covid-19 as the number of cases shot up 9-fold to above...

FxWirePro: Brazilian Lira Seems Edgy On BCB Rate Cut Speculation – Hedge USD/BRL Via Optionality

Apr 21, 2020 15:19 pm UTC| Research & Analysis Central Banks Insights & Views

Following its last rate meeting the Brazilian central bank did not give the impression that it was going to cut interest rates further. In March it had cut its key rate by 50bp to 3.75% and had said in its statement that...

FxWirePro: Bearish/Bullish Driving Forces of GBPJPY, OTC Updates And Hedging Perspectives Ahead of UK PMIs And BoJ MPS

Apr 21, 2020 09:07 am UTC| Research & Analysis Central Banks Insights & Views

Bearish GBPJPY Scenarios: 1) The UK-EU fail to agree on a trade deal and the UK exits the transition period on WTO terms (GBPUSD to 1.20, potentially 1.10). 2) The economic lockdown is extended into June, delaying...

FxWirePro: CBR’s Cushions Ruble Momentarily Through FX Reserve – Uphold USD/RUB Options Positions

Apr 20, 2020 14:25 pm UTC| Research & Analysis Central Banks Insights & Views

CBR governor Elvira Nabiullina held a press conference last Friday, where she de facto confirmed that the central bank was ready to resume cutting rates. This is significant because CBR had paused rate cuts last month...