
Mar 28, 2018 12:22 pm UTC| Research & Analysis Insights & Views Central Banks
Following the initial flash crash earlier last Friday, the Turkish lira appeared to be stabilized for a while before it continues to depreciate slightly again. The lira is not alone in this: currencies such as the forint...
FxWirePro: Deviate and hedge EUR/USD risks in EUR/NZD via knock out options
Mar 28, 2018 07:09 am UTC| Research & Analysis Central Banks Insights & Views
Our RBNZ outlook (on hold throughout 2018) is anchoring short-maturity interest rates and should keep 2yr swap rates in a 2.10% to 2.50% range, as long as inflation remains below 2%. While we pair EUR vs NZD to...

Fundamental Evaluation Series: EUR/USD vs. 2-year yield spread
Mar 27, 2018 12:43 pm UTC| Commentary Central Banks
The chart above shows, how the relationship between EUR/USD and 2-year yield divergence has unfolded since 2012. It is evident that these short rates have been a key influencing factor for the pair as policy divergence...

Fundamental Evaluation Series: USD/CHF vs. 2-year yield divergence
Mar 27, 2018 12:37 pm 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: USDJPY vs. 2-year yield spread
Mar 27, 2018 12:31 pm UTC| Commentary Central Banks
This one pair has been at odds with yield divergence throughout early 2016 as the yen benefited from risk aversion and due to market participants doubts on BoJs abilities to ease policies further. It had shown...

Fundamental Evaluation Series: 2-year yield spread vs. GBP/USD
Mar 27, 2018 12:26 pm UTC| Commentary Central Banks
The chart above shows, how the relationship between GBP/USD and 2-year yield divergence has unfolded since 2012. The cozy relationship between the yield spread and the exchange rate, in this case, is quite visible. Back...
Fundamentals to watch out for this week
Mar 26, 2018 13:01 pm UTC| Commentary Central Banks
In terms of volatility risks, this week is relatively calm compared to the last two both in terms of data and events. What to watch for over the coming days: Central Banks: U.S. Federal Reserve members Dudley...