Fed Hike Aftermath Series

FED hike aftermath Series: FOMC may await Brexit vote and hike in July

May 06, 2016 08:55 am UTC| Commentary Central Banks

San Francisco FED president John Williams, who has no vote this year thinks 2-3 rate hikes this year reasonable but that will be data dependent and at its June meeting FOMC will have to take into account the possibility of...

Renminbi Series

China’s FX reserves likely declined again in April

May 06, 2016 08:16 am UTC| Commentary Central Banks

Chinas official foreign reserves are likely to have dropped again, although moderately, in April, according to Societe Generale. Chinas FX reserves are expected to have decreased to $3,195 billion in April from $3,212 at...

RBNZ policy easing really stimulating Kiwis economy?

May 06, 2016 06:59 am UTC| Central Banks Commentary

RBNZ doesnt really seem to have eased their economy by reducing 25 bps OCR in last month end or it may take time to factor in this monetary policy decision. We suspect their monetary policy cushioning Advanced GDP...

FX Hedging Strategy Series

FxWirePro: Commodity currencies tepid vols despite RBA and BoC policy divergence - Constant AUD/CAD Vega in OTM strikes despite mild IVs

May 04, 2016 08:11 am UTC| Commentary Central Banks

The Canadian economic position seems encouraging, with GDP and retail sales both producing upbeat consensus expectations in March. Despite the prevailing economic conditions, the BoC stood pat at its current policy...

FxWirePro: Trading adjustments in Asian Forward Derivative baskets after BoJ and RBA

May 03, 2016 14:50 pm UTC| Insights & Views Central Banks

Major Asian asset baskets gained, with Australia shares jumping as RBA cuts rates. The RBA cut its benchmark rate by 25 basis points to a record low 1.75 percent, noting that inflation data are unexpectedly low and that...

Briferendum Series

Briferendum Series: Exit may trigger BOE’s worst nightmare

May 03, 2016 08:58 am UTC| Commentary Central Banks

What is central banks primary goal? To ensure price stability. Some have other mandates too, like FEDs maximum employment. What are they afraid of? Uncontrollable inflation. (We are not considering deflation,...

RBA cuts rates to 1.75% ahead of federal budget

May 03, 2016 06:58 am UTC| Insights & Views Central Banks

The Reserve Bank of Australia has cut Australias cash rate by 25 basis points to a record low of 1.75%, citing inflationary pressures. The decision comes as Treasurer Scott Morrison prepares to unveil his first federal...