Renminbi Series

China FX reserve tumbles over outflow and valuation

Dec 08, 2015 11:18 am UTC| Commentary Central Banks

Chinas FX reserve tumbled by $87 billion in November, despite positive current account of $54.1 billion, bringing back fears of outflow return, which massacred Chinas FX reserve in August, when FX reserve fell by record...

Fed Liftoff Series

FED liftoff series – Why is it still crucial?

Dec 08, 2015 10:47 am UTC| Commentary Central Banks

The event the world has been awaiting, preparing and speculating for is finally approaching - meeting by US Federal Reserve, in which US interest rates will finally rise from their zero bound. After Fridays super job...

BoE rate hike - sooner or later?

Dec 08, 2015 09:30 am UTC| Commentary Central Banks

UKs growth is comparable to that of U.S., andinflation is similar to that of Euro zone. Positve economic momentum will be shown throughthe central bank ratessooner or later. BoE recently indicated that it will raise...

Negative Rates Series

Currency War Series

SNB’s deposit rate cut likely this week

Dec 08, 2015 09:11 am UTC| Commentary Central Banks

The modest rate cut by ECB last week raises pressure on the Swiss National Bank for a rate cut. The Swiss interest rates are below the EUR rates across the horizon, which support EUR/CHF to move above 1.10. Switzerland...

Higher Fed funds rate may raise arbitrage

Dec 08, 2015 05:12 am UTC| Commentary Central Banks

The U.S. Federal Reserve is holding more bonds; as a result, total USD reserves in the Fed funds system have increased to USD 2,500 billion, which is more than reserve requirement. The depository institutes, who have...

Oil and fiscal policy to shape future BoC actions

Dec 07, 2015 23:35 pm UTC| Commentary Central Banks

In the policy statement, BoC noted the economic adjustment in Canada is being aided by the recovery in the US, the depreciated currency and previous monetary easing. Q3 GDP seemed to confirm BoCs rhetoric, showing a...

Currency War Series

ECB with a further monetary easing bias in 2016

Dec 07, 2015 22:27 pm UTC| Commentary Central Banks

There is unlikely to be much change in euro zone economic growth in 2016. Non-performing loans on bank balance sheets, overly high corporate and private debt, falling house prices in Italy and France and the lack of...