South African Reserve Bank likely to hike rate only once in 2018 and 2019
Jul 20, 2018 17:01 pm UTC| Commentary Central Banks
The South African rand depreciated yesterday morning in line with other EM currencies due to appreciation of the US dollar. The rate decision and press statement of the South African central bank were not able to give any...
FxWirePro: Scale up shorts in Antipodeans via relative optionality trades
Jul 20, 2018 12:59 pm UTC| Research & Analysis Central Banks
Never miss the point that US dollar should strengthen further if the Fed hikes further this year, and that will push NZDUSD lower. In addition, the NZ-US interest rate advantage has been eroded, removing one of the...

Fundamental Evaluation Series: USDJPY vs. 2-year yield spread
Jul 20, 2018 11:42 am UTC| Commentary Central Banks
The above chart shows the relation between the 2-year bond spread (U.S. - Japan) and USD/JPY exchange rate. Brief background (2012-2016): This one pair has been at odds with yield divergence throughout early 2016 as...

Fundamental Evaluation Series: USDJPY vs. 2-year yield spread
Jul 20, 2018 11:42 am UTC| Commentary Central Banks
The above chart shows the relation between the 2-year bond spread (U.S. - Japan) and USD/JPY exchange rate. Brief background (2012-2016): This one pair has been at odds with yield divergence throughout early 2016 as...

Fundamental Evaluation Series: USD/CHF vs. 2-year yield divergence
Jul 20, 2018 11:17 am UTC| Commentary Central Banks
During our evaluation period beginning 2012, the yield spread between the US 2-year bond and a Swiss equivalent has widened by almost 200 basis points but the exchange rate hasnt followed through as much as it should have...

Fundamental Evaluation Series: 2-year yield spread vs. GBP/USD
Jul 20, 2018 11:03 am UTC| Commentary Central Banks
The chart above shows, how the relationship between GBP/USD and 2-year yield divergence has unfolded since 2012. Brief history (2012-2016) The cozy relationship between the yield spread and the exchange rate, in this...

Fundamental Evaluation Series: 2-year yield spread vs. GBP/USD
Jul 20, 2018 11:03 am UTC| Commentary Central Banks
The chart above shows, how the relationship between GBP/USD and 2-year yield divergence has unfolded since 2012. Brief history (2012-2016) The cozy relationship between the yield spread and the exchange rate, in this...