FxWirePro: Roll on CHF longs in a roller-coaster ride through cash against USD and via optionality versus EUR

Mar 29, 2018 12:43 pm UTC| Research & Analysis Insights & Views Central Banks

In this write-up, we emphasize on staying short in USDCHF spot trades and short EURCHF put options. USDCHF turned elegantly lower towards the end of the week when the dollar lost ground against other reserve currencies in...

FxWirePro: Spotlight on recent economic and monetary developments and their impacts on carry, high-beta and G10 FX universe

Mar 29, 2018 07:30 am UTC| Research & Analysis Central Banks Insights & Views

The currency markets navigated two major events over the past week that left the broad dollar with no more directional clarity than before. The March FOMC under new Fed Chair Powell raised rates as widely anticipated and...

RBI likely to leave benchmark repo rate, CRR unchanged with neutral stance: Scotiabank

Mar 29, 2018 06:23 am UTC| Commentary Central Banks Economy

The Reserve Bank of India (RBI) is expected to leave its benchmark Repo Rate and Cash Reserve Ratio (CRR) unchanged at 6.00 percent and 4.00 percent respectively with a neutral stance at its monetary policy meeting,...

Bank of Thailand stands pat in March, unlikely to change policy rate in 2018

Mar 28, 2018 13:56 pm UTC| Commentary Central Banks

The Thai central bank stood pat during its meeting today. The Bank of Thailand kept its policy rate unchanged at 1.5 percent. The policy statement repeated that an accommodative monetary policy is still necessary to...

FxWirePro: Vulnerable Turkish lira on verge of establishing all-time peaks, most luring bearish candidate among EMFX to be hedged

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...