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...

Indonesian Rupiah to strengthen on tax amnesty inflows

Sep 28, 2016 11:51 am UTC| Insights & Views Central Banks Economy

The Indonesian Rupiah strengthened to a six-month high against the US dollar on the back of higher tax amnesty inflows. The government has been optimistic about tax amnesty inflows and has approved a total of 21 banks, 18...

Worrisome Signs Series

Worrisome Sings Series: Low rates erode banks’ profitability and rises pension deficit

Sep 28, 2016 11:01 am UTC| Commentary Economy Central Banks

The debate about the cost and benefits of low rates has started heating up. Central bankers like Mario Draghi, Janet Yellen speak in favor of low rates arguing that they have brought stability and without them, the world...