FxWirePro: Derivatives strategy for EURIBOR as ECB continue to be dovish until Christmas

Aug 25, 2016 13:34 pm UTC| Central Banks

Long-term hedge against higher rates: As the EUR long rates have moved lower and the yield curve has flattened, there is increasing interest in long-term hedges against a scenario of rates eventually moving higher. EUR...

Negative interest rate policy arouse doubts over impact on capital markets, IMF defends ECB’s policy

Aug 25, 2016 11:54 am UTC| Commentary Central Banks

The negative interest rate policy has aroused doubts over the potential impact on capital markets; the debate about whether a negative interest rate policy (NIRP) helps or hinders the transmission mechanism of monetary...

Briferendum Aftermath Series

Briferendum Aftermath Series: BoE’s long-dated gilt purchases likely to face troubles ahead

Aug 24, 2016 11:27 am UTC| Commentary Central Banks

The Bank of Englands (BoE) newly introduced quantitative easing unlikely to be a smooth one, especially the purchases of long-dated gilts. The central bank is purchasing 1.17 billion worth of short-dated securities on...

PBoC likely to stay neutral for an extended period to avoid potential financial bubbles

Aug 24, 2016 11:21 am UTC| Central Banks

The Peoples Bank of China is expected to stay neutral for an extended period of time, in order to avoid potential property and financial bubbles. The corridor of 7-day repo rate is targeted to centre around 2.25 percent...

Fed Hike Aftermath Series

Fed Hike Aftermath Series: 2-year auction speaks a lot on rate hike expectations

Aug 24, 2016 07:39 am UTC| Commentary Central Banks

The 2-year treasury auctions yesterday say a lot about market expectations of a hike and also on the Jackson Hole symposium, where Ms. Yellen is expected to speak. The symposium will begin on Thursday in the mountain...

Fed Hike Aftermath Series

Fed Hike Aftermath Series: Discount rate voting shows who’s hawk and who’s not

Aug 24, 2016 06:37 am UTC| Commentary Central Banks

The U.S. Federal Reserve is scheduled to meet in the middle of the next month to decide their next move and some analysts think that the Fed can go for rate hikes at that meeting. Lets have a look at the minutes of Feds...

FxWirePro: Trading rules for EM FX baskets amid global uncertainties

Aug 23, 2016 13:45 pm UTC| Central Banks

The dollar weakened on Tuesday as uncertainty over the timing of the next Federal Reserve rate hike weighed ahead of a speech by Fed Chair Janet Yellen later in the week. The U.S. central bank raised interest rates for the...