FxWirePro: RBNZ likely to stay pat but to deliver balanced minutes - 1w IV still stimulates call writers advantages

Sep 19, 2016 07:41 am UTC| Central Banks Research & Analysis Insights & Views

The OCR is biased lower, but like the consensus and market, we dont expect action at the OCR Reviewon Thursday.Further easing will be signalled the NZD is too deflationary to ignore, and doing nothing would send it...

Bank of England inclined to further ease policy, likely to lower rate to 0.1 pct in November

Sep 19, 2016 06:18 am UTC| Commentary Central Banks

In the past couple of week, anxiety about future U.K. central bank policy appears to have been the main driver of market sentiment, especially in the bond markets. For instance, the 10 year gilt yield reached a...

Bank Indonesia likely to ease monetary policy as deflationary pressures still exist

Sep 19, 2016 04:58 am UTC| Commentary Economy Central Banks

Bank Indonesia is expected to lower its benchmark interest rate further as the current stage of persisting deflation opens door to a series of rate cuts in the near term. Further, deflationary pressure persists in the...

FxWirePro: USD/CNH seagull structure for next phase of Chinese currency depreciation

Sep 16, 2016 11:58 am UTC| Central Banks Insights & Views

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 to drive further Chinese offshore currency depreciation. We also hold...

Bank of Japan unlikely to ease policy, likely to adjust policy framework

Sep 16, 2016 10:07 am UTC| Commentary Central Banks

The Bank of Japan is unlikely to ease policy during its upcoming meeting next week, said Danske Bank in a research report. But it is expected to adjust its policy framework by leaving calendar-based communications on when...

Bank Indonesia targets prevention of excess IDR volatility, foreign reserves rise in August

Sep 16, 2016 06:16 am UTC| Commentary Economy Central Banks

Indonesias foreign reserves rose during the month of August; however, this is hardly surprising given that foreign inflows into equities and Indonesian government bonds amounted to USD 10 billion in the same period. In...

FxWirePro: NZD/USD IVs seem expensive despite RBNZ preview hints OCR to stand pat – Deploy knock out puts to monitor IVs

Sep 16, 2016 06:16 am UTC| Central Banks Insights & Views

RBNZ Preview: We expect the Reserve Bank to hold the OCR at 2% next week. The kiwi has been one of the top performers this year despite two RBNZ rate cuts. The RBNZs current easing cycle started in June 2015, and the...