FX Hedging Strategy Series

FxWirePro: Combination of HY vols and risk reversal favour EUR/GBP bullish momentum – deploy credit put spreads

Jan 22, 2016 08:16 am UTC| Technicals Central Banks

BoE has recently stood pat at the benchmark UK interest rate at 0.5%. This unchanged rate was no surprise to the forecasts. BoEs QE in Jan total GBP stays flat at 375 bln GBP vs previous 375 bln GBP. The implied...

Currency War Series

Danmarks Nationalbank likely to lower interest rate on certificates of deposit to -0.75%

Jan 22, 2016 07:24 am UTC| Commentary Central Banks

The European Central Bank is likely to lower deposit rate by 10bp to -0.40% during its March meeting. Danmarks Nationalbank (DN) is expected to follow the ECBs rate cut and lower the interest rate on certificates of...

‘Thank you Draghi’ rally for global markets

Jan 22, 2016 06:37 am UTC| Commentary Central Banks

Global financial market is reversing its recent decline in the wake of possibility that European Central Bank (ECB) might add more stimulus in the market within two months. ECB president Mario Draghi, again dropped...

Central Bank of Brazil unlikely to hike rates as aggressively as forecast next year

Jan 22, 2016 06:18 am UTC| Commentary Central Banks

Brazil might already be in distress due to fiscal dominance, while the inflation targeting framework of the Central Bank of Brazil might not be functioning. Fiscal considerations are mainly driving inflation expectations....

Trade War Series

China Crisis Series

Change in PBoC’s net foreign assets better gauge of FX intervention

Jan 22, 2016 05:16 am UTC| Commentary Central Banks

The extent of FX intervention can be gauged by measures apart from Official Foreign Reserves (OFR) data, such as the change in PBoCs foreign assets and the change in financial institutions forex purchase position....

Emerging Market Crisis Series

SARB likely to hike rate lower than market forecast

Jan 22, 2016 04:47 am UTC| Commentary Central Banks

The ZAR is expected to be weak in the near future, although lesser than what was witnessed in 2015. If South Africas local government elections are not disrupted and if the February budget is well received, the country...

Japan's factory index falls, focus shifts to BOJ meet

Jan 22, 2016 04:05 am UTC| Commentary Central Banks

Preliminary factory index reading reveals Japans manufacturing sector remained in a solid expansionary state in January though declined slightly from December. The Nikkei-Markit Flash Japan Manufacturing Purchasing...