FX Hedging Strategy Series

FxWirePro: US election premiums visible USD/JPY OTC markets - Vega-neutral USD/JPY calendar spreads

Sep 30, 2016 09:19 am UTC| Central Banks Research & Analysis

Just as the market was craving any clear-cut statement on the Feds future interest rate policy in the run-up to the last FOMC meeting, regardless of how clearly they are staking out a rate rise in December. It simply...

What’s right “corporate deleverage, deflation or BOJ’s flow funds” - Tankan survey likely to validate

Sep 30, 2016 07:34 am UTC| Central Banks Insights & Views

Along the same lines the Bank of Japans (BoJ) new old monetary policy, which will concentrate on controlling the yield curve, and would not have an effect on the Japanese inflation rate. On the contrary, the data is...

FX Hedging Strategy Series

FxWirePro: USD/CAD OTC bids suggest bearish risks in 1m and upside risks in 3m tenors on OPEC and Fed’s speculation – 3way straddles vs calls hedge either ways

Sep 29, 2016 12:37 pm UTC| Central Banks Research & Analysis

It seems that the OPEC countries did decide on a cut in production at their informal meeting in Algiers in a surprise move. The details will only be worked out in time for the next official meeting in November. The...

US Election Series

Chair Yellen challenged hard over governor’s involvement in Clinton campaign

Sep 29, 2016 12:32 pm UTC| Commentary Central Banks

After Donald Trump criticized US Federal Reserve for playing politics with interest rates and creating a false economy, Fed Chair Janet Yellen came out strongly in September FOMC meeting that the Fed is independent and...

Riksbank likely to accept gradually stronger SEK against EUR through 2016

Sep 29, 2016 11:23 am UTC| Commentary Central Banks

The Swedish central bank, Riksbank, has given enough proof that it is quite responsive with regard to inflation risks. Therefore, it is likely that the central bank might continue to manage preventing a rapid, unwanted and...

FxWirePro: EUR/CHF is “odd one out from EUR/high beta snaps” – FX derivative perspectives among US polls driven FX portfolio

Sep 28, 2016 12:53 pm UTC| Central Banks Insights & Views

In US, two events are engulfing dollars risk premia, one is Fed rate hike and presidential polls that are highly significant for US currency before finishing 2016. What is interesting is that rate expectations have...

Hungarian National Bank finishes easing for now, rate cuts likely again next year

Sep 28, 2016 12:21 pm UTC| Insights & Views Central Banks

Hungarian National Bank (MNB) has cut its benchmark rate down to 0.9 percent this year and signalled that the easing cycle is finished for now. The central bank maintained flexible wording around its guidance. While the...