FX Hedging Strategy Series

FxWirePro: USD/CNH hedging portfolio reshuffling, will PBoC finally action on Chinese capital outflow crisis?

Jan 04, 2017 08:50 am UTC| Central Banks Research & Analysis

What occurred at the start of 2017 evokes the market anarchy in early 2016. This morning, Chinese offshore currency (CNH) overnight HIBOR spiked to 18.5%, a signal that Chinas currency is under great pressure again....

FX Hedging Strategy Series

FxWirePro: Fair interpretation of SNB’s FX intervention – Hedge via 3-way straddles versus Call despite low yielders but to capitalize on 1m skews

Jan 03, 2017 12:40 pm UTC| Central Banks Research & Analysis

The Swiss National Bank (SNB) has exhausted with an average of CHF 1.2bn. per week on FX market interventions in 2016, sources say. As a result, the Swiss central bank contributed decisively to keeping the EURCHF exchange...

FX Hedging Strategy Series

FxWirePro: Russian disinflation moves in line with RCB, doors open for monetary easing – Gutsy check through put spreads for further USD/RUB depreciating risks

Jan 02, 2017 13:05 pm UTC| Central Banks Commentary

At year-end Russian consumer prices provided a positive surprise. Last Friday the office of statistics announced that inflation in December had fallen to 5.4%. The previous month the rate of inflation had stood at...

Fundamentals to watch out for this week

Jan 02, 2017 11:05 am UTC| Commentary Economy Central Banks

This week is relatively less risk heavy, compared to the previous one. However, there are some key data such as the jobs report to watch out for. What to watch for over the coming days: Central banks: Federal...

FxWirePro: Dollar index likely to rise to 115 this year; Fed to hike thrice

Jan 02, 2017 04:18 am UTC| Central Banks Insights & Views

The United States dollar index is likely to continue its post-Presidential election merriment even in 2017. We foresee that the dollar index (DXY) will jump above 107 by the first quarter and break April 2002 high of 115...

Central Banking Series

PBOC to keep policy neutral, liquidity stable in 2017

Dec 30, 2016 15:48 pm UTC| Commentary Central Banks Economy

The Peoples Bank of China (PBoC) on Friday said that it would keep monetary policy neutral to help maintain stable liquidity conditions in the year ahead. In a statement summarizing the fourth quarter monetary policy...

Kuroda strikes optimistic tone on Japan's recovery in 2017

Dec 29, 2016 14:32 pm UTC| Commentary Economy Central Banks

In a rare exclusive interview with the Nikkei overnight, Bank of Japan Governor Haruhiko Kuroda continued to strike a more optimistic tone stating that he sees steady Japan recovery next year. He said that brightening...