UK PMIs, investments send early and better clarity to infer for most likely BOE easing tomorrow

Aug 03, 2016 07:56 am UTC| Insights & Views Central Banks

As the British PMI for the manufacturing sector has missed the forecasts recently, a downward shift already would mean that sentiments are certainly not conducive for business in the UK, (actual 48.2 versus forecasts 49.1...

FxWirePro: Stay short in NZD/CAD on valuation, RBNZ, disinflation and China slowdown

Aug 03, 2016 07:33 am UTC| Research & Analysis Insights & Views Central Banks

On Valuation terms: NZD remains overvalued, while milk powder prices have stayed depressed and inflation in New Zealand has surprised to the downside. NZD TWI strength is a major concern, together with downside risks to...

FX Hedging Strategy Series

FxWirePro: Load up GBP/JPY longs in back spread on accelerated IV pace ahead of BoE - hedge downside risks using Vega ATM puts

Aug 03, 2016 07:12 am UTC| Research & Analysis Insights & Views Central Banks

1W and 2W ATM IVs of GBP crosses are acting crazily in OTC markets, GBPJPY flashing more than 19.80% and 17.20% respectively ahead of Bank of Englands monetary policy which is most likely to ease about 25bps. Please...

Currency War Series

Is the concept of 'helicopter money' set for a resurgence?

Aug 03, 2016 06:50 am UTC| Insights & Views Economy Central Banks

As a student I was taught (and this will date me) that macroeconomics (the study of the economy as a whole) was essentially governed by two alternative views Keynesianism and Monetarism. Keynesians believed that the...

Bank of Thailand likely to keep policy rate on hold at 1.5 pct

Aug 03, 2016 05:30 am UTC| Commentary Central Banks

The Bank of Thailand is likely to keep its policy rate on hold today at 1.5 percent, noted Scotiabank in a research report. The central bank policymakers are worried regarding the macroeconomic and financial stability. The...

Currency War Series

Turnbull to banks: pass on whole interest rate cut

Aug 03, 2016 05:15 am UTC| Insights & Views Central Banks

Prime Minister Malcolm Turnbull has sternly told the banks they should pass on the whole of Tuesdays rate cut - or their chief executives must explain why they are not doing so. After the Reserve Bank cut the cash rate...

FX Hedging Strategy Series

FxWirePro: Can Riksbank factor GDP in September or still dubious on inflation – Hedge SEK’s appreciating risks in Q3 and Q4

Aug 02, 2016 12:34 pm UTC| Insights & Views Central Banks

EURSEK has continued higher over the last month, trading a shy below 9.60, which is the highest level seen since last autumn. The growth in Sweden is solid and inflation has risen. Despite the positive trend, the...