Fed Hike Aftermath Series

FED Hike Aftermath Series: More likelihood of a hike today than markets price-in

Apr 27, 2016 08:16 am UTC| Commentary Central Banks

Market participants are pricing only 2% chance that there will be a 25 basis points hike today and first hike to come only in September. However, in reality, we feel there is quite a good chance that rates will be hiked...

Fed Hike Aftermath Series

What could cause Fed to be more dovish again?

Apr 27, 2016 08:05 am UTC| Insights & Views Commentary Central Banks

Preparation is everything. That also applies for the Feds normalisation course, but no change is expected from the Fed this week. The Fed will need to start prepping the market more actively if a hike in June is a viable...

Fed Hike Aftermath Series

FED Hike Odds Shift to September

Apr 26, 2016 06:34 am UTC| Commentary Central Banks

Market participants have started taking hawkish members of FED quite seriously and with stock markets, commodities shrugging off early weakness along with Dollar losing ground, case for two hikes from FED this year is...

FX Hedging Strategy Series

FxWirePro: NZD IVs spike ahead of RBNZ, sensitivity tool favours OTM put strikes

Apr 26, 2016 06:03 am UTC| Commentary Central Banks

Leveraged accounts remained bullish on commodity currencies, led by the AUD. They raised their net AUD longs by USD0.8bn to USD3.4bn, the highest since Sep 14 (see Figure 10). They also added to their net longs in NZD, by...

Emerging Market Crisis Series

Can FOMC be less dovish this week? - Rates in Emerging Asia

Apr 26, 2016 05:02 am UTC| Commentary Central Banks

This weeks US FOMC meeting could set the tone for USD/Asia. With the recent risk rally, improvement in Chinas data and a loosening in financial conditions on the back of the USD depreciation, the Fed will likely be less...

FX Hedging Strategy Series

FxWirePro: Hedge USD receivables on boosted risk reversals in H2 of 2016

Apr 22, 2016 12:37 pm UTC| Commentary Central Banks

DXY (dollar index) which measures the greenbacks strength against a trade-weighted basket of six major currencies, was currently up at 94.90 comparing previous close at 94.65. Overnight, the dollar trimmed losses...

Negative Rates Series: Can central banks digest their own negative medicine?

Apr 22, 2016 09:38 am UTC| Commentary Central Banks

Central banks around the developed world, increasingly pushing the yield curve towards zero, either through asset purchase or through introduction of negative rates. After Japanese government introduced negative rates,...