FOMC maintains hawkish tone, keeps Fed funds rate unchanged

Jul 28, 2016 05:28 am UTC| Commentary Central Banks

The Federal Reserve Open Market Committee maintained a hawkish tone at the monetary policy meeting held Wednesday, while keeping the Federal Funds Rate unchanged. However, the Feds statement kept hopes alive for a rate cut...

FX Hedging Strategy Series

FxWirePro: Sterling shrugs off better than forecast GDP flashes – CRBS to hedge EUR/GBP’s upside risks

Jul 27, 2016 12:35 pm UTC| Research & Analysis Insights & Views Central Banks

The GBP versus a few major G10 currencies on Wednesday, despite upbeat Q2 GDP numbers, as the investors seem to have remained cautious ahead of the Feds monetary policy statement due later in the day and the Bank of...

Sterling against few majors shrugs off growth, Does BoE factor in Q2 GDP for rate cuts?

Jul 27, 2016 12:14 pm UTC| Insights & Views Central Banks

GBP crosses seem to have neglected the British GDP data which is better than expected, actual 0.6% versus forecasts at 0.5% and previous 0.4%. GBP versus a few major G10 currencies are losing after better than expected...

Fed Hike Aftermath Series

Don’t expect much fireworks from FOMC today

Jul 27, 2016 08:34 am UTC| Commentary Economy Central Banks

Dont expect much from FOMC today. As a matter of fact, we at FxWirePro, wont be surprised if the committee keeps the most parts of the previous statement intact other than adding some Brexit concerns to it. However, there...

FX Hedging Strategy Series

FxWirePro: Short USD/CNY vols via options as tail risk of large CNY devaluation under new CFETS basket regime

Jul 26, 2016 11:35 am UTC| Research & Analysis Insights & Views Central Banks

By the end of 2016, we expect USD/CNY to be testing 7.0 due to a mix of cyclical USD strength as well as domestic factors. FX intervention cannot continue indefinitely. The orderly, low vol depreciation of the RMB has...

US Fed likely to keep cautious policy stance; but risk skewed towards more hawkish Fed

Jul 26, 2016 11:28 am UTC| Commentary Central Banks

The FOMC (Federal Open Market Commitee), at its upcoming meeting on Wednesday, is likely to keep the federal funds target on hold. According to a Danske Bank research note, the FOMC will keep the federal funds target range...

Risk aversion and Aso comments push Yen higher ahead of BoJ meeting on Friday

Jul 26, 2016 09:20 am UTC| Commentary Central Banks

The Japanese yen has started strengthening ahead of the monetary policy meeting of Bank of Japan (BoJ) on Friday riding on risk aversion triggered by a drop in oil price. The speculation is quite high that the central bank...