Will Emerging Markets benefit from a cautious Fed?
Feb 03, 2016 15:15 pm UTC| Commentary Central Banks Economy
The Fed is likely to tighten monetary policy only by as much as markets allow without major turmoil. The FOMC statement showed that the Fed takes the financial market turmoil and the development in China and other emerging...
China’s foreign reserve data likely catalyst for next CNY move
Feb 03, 2016 15:05 pm UTC| Commentary Central Banks
Chinas foreign reserve data to be released on Chinese New Year Eve is likely to be the catalyst for the next CNY move. If there is another big drop in the reserves, the market could speculate more depreciation in Chinese...
Wheeler's comments to support NZD in the short-term
Feb 03, 2016 14:55 pm UTC| Commentary Central Banks
NZD saw handsome gains overnight, and this despite continued risk aversion! Decent Q4 labour market data which recorded a surprise fall of the unemployment rate from 6.0% to 5.3% was one of the reasons. But the main reason...

BOJ easing rate side effects – retail traders deprive of JGBs
Feb 03, 2016 12:04 pm UTC| Commentary Central Banks
Bank of Japans (BOJ) newly introduced negative rate has sparked some consequences in Japanese government bond (JGB) issuance. Ministry of Finance, Japan, announced today that due to falling yields, from February 5th, it...
Market now price in no hike from FED in 2016
Feb 03, 2016 10:13 am UTC| Commentary Central Banks
Market participants are now seeing no chance of a hike in 2016, especially as volatility returned in the market. Bank of Japans (BOJ) introduction of negative rates seem to have only paused the selloffs for a day and...

Can PBoC make a successful transition towards a more flexible exchange rate?
Feb 03, 2016 10:09 am UTC| Insights & Views Central Banks
PBoC has shocked the markets twice in the past six months in its effort to depreciate CNY against the USD, first in August and then Dec 2015. Both the times markets evidenced intensified CNY depreciation expectations,...

Scandis currency space sensing both warmer and chilly season – SEK seems cheaper than NOK
Feb 03, 2016 10:02 am UTC| Insights & Views Central Banks
Scandinavian FX experienced the impetus of central banks resolutely pointing growth in Norway and inflation in Sweden. But the policy insertion was similar despite high Norwegian inflation and high Swedish growth. The...