FX Hedging Strategy Series

FxWirePro: Gold seems edgy as downside risk sentiments intensify in short term owing to latest central banks catalysts

Oct 05, 2016 12:56 pm UTC| Central Banks Commentary

In the bullion market functions, it appears to be predominantly driven by major central bank catalysts in the recent month with both the BoJ and ECB broadly disappointing on easing policies relative to outlook while the...

FX Hedging Strategy Series

FxWirePro: Stay positioned in EUR/CZK as CNB indicates exit from floor

Oct 05, 2016 11:07 am UTC| Central Banks Commentary

We remain bullish CZK, with the CNB more confident it will exit from the koruna cap in mid-2017 at its latest meeting. This week, the CNB kept the benchmark rate unchanged at 0.05% and attempted to tame market...

Solid PMI readings for September suggest neutral policy stance from BOE

Oct 05, 2016 10:31 am UTC| Insights & Views Central Banks Economy

Markit/CIPS composite PMI rises to 53.7 in September from 53.2 in August. UK service sector continued to recover from Julys EU referendum-induced shock, however, the rate of expansion slowed. Septembers services PMI saw...

FxWirePro: EUR/CNH bearish bets on Brexit, U.S. election uncertainty intensifies

Oct 05, 2016 09:13 am UTC| Central Banks Insights & Views

A rise in capital outflows would likely to drive further Chinese offshore currency depreciation. We hold the bias that the PBoC would let further weakness in CNY after the September G20 summit, as a policy reaction to the...

ECB taper rumor rattles markets

Oct 05, 2016 08:39 am UTC| Commentary Economy Central Banks

Yesterday the Eurozone bond market and the bullion got rattled big time on the rumor that the European Central Bank (ECB) might be considering a taper after the bond buying program gets concluded in March. After all, the...

FxWirePro: EUR/CNH bearish bets on Brexit, U.S. election uncertainty intensifies

Oct 05, 2016 07:39 am UTC| Insights & Views Central Banks

In our recent write on Chinese currency regime, we have already stated that 2016 year-end forecast of USDCNY at 6.85 is firmly upheld. The prospects of a Fed hike before year-end and a rise in capital outflows would likely...

FX Hedging Strategy Series

FxWirePro: Central banks in APAC stimulate AUD/NZD bullish sentiments and holders of option straps in lurk for conducive IVs

Oct 05, 2016 07:16 am UTC| Central Banks Commentary

The AUD has enjoyed support from commodity prices plus the RBA sounding comfortable about Australias outlook as the central bank maintained status quo in its recent monetary policy (cash rates unchanged at 1.50%). An...