
Fundamental Evaluation Series: USD/CHF vs. yield divergence review
Jul 28, 2016 11:07 am UTC| Commentary Central Banks Economy
In recent days, Swiss francs correlation with the 2-year yield spread (US-Swiss 2 year) has dropped to 25 percent but time on time again it shows relatively high positive correlation, as high as 80 percent at times. Just...

Fundamental Evaluation Series: USD/JPY vs. yield divergence review
Jul 28, 2016 09:02 am UTC| Commentary Central Banks
This one pair has been at odds with yield divergence lately after acting as an excellent responder to it from 2012 (starting period of the analysis) to summer of 2015. It kept responding to yield divergence despite a drop...

Fundamental Evaluation Series: GBP/USD vs. yield divergence review
Jul 28, 2016 08:38 am UTC| Commentary Central Banks Economy
The chart above shows, how the relationship between GBP/USD and 2-year yield divergence has unfolded since 2012. The cozy relationship between the yield spread and the exchange rate, in this case, is quite visible. Back...

Jul 28, 2016 08:06 am UTC| Research & Analysis Insights & Views Central Banks
The implied volatilities of ATM contracts for near month expiries of this the pair are spiking in sky-rocketed pace. Here are the evidences: ATM IVs of this pair is trending higher at around 53.61%, 17.99% and 24.47%...

Fundamental Evaluation Series: EUR/USD vs. yield divergence review
Jul 28, 2016 07:41 am UTC| Commentary Central Banks Economy
The chart above shows, how the relationship between EUR/USD and 2-year yield divergence has unfolded since 2012. It is evident that these short rates have been akey influencing factor for the pair as policy divergence...
FxWirePro: Spill-over effects of Brexit, who to hedge long and shorts Brexit
Jul 28, 2016 05:56 am UTC| Insights & Views Central Banks
What drive GBP hedging for further downside risks: Despite UK GDP prints managed to post better than forecasted numbers, actual 0.6% versus forecasts at 0.5% and previous 0.4%, the UK growth outlook has been hit by...
FOMC monetary policy July 2016: Assessing future bias
Jul 28, 2016 05:29 am UTC| Commentary Central Banks
Yesterday, FOMC policymakers preferred to keep policy steady and not go for a hike. This was somewhat expected given the risks arising from the British referendum. There are not enough evidence yet to make a...