China onshore liquidity tightens due to PBoC’s intervention

Aug 21, 2015 07:17 am UTC| Commentary Central Banks

PBoC set USD-CNY fixing rate at 6.3864 this morning, compared with yesterdays closing rate at 6.3891. In general, CNY remained quite stable this week, which suggests that Chinas central bank could have sold USD to...

Norges Bank to lower short rates

Aug 20, 2015 09:24 am UTC| Commentary Central Banks

Norwegian economy growth has been below trend for a couple of years now and unemployment on the rise since 2013. This means that the economy already is in a situation with considerable slack and low wage pressure....

Fed rate hike in September?

Aug 20, 2015 07:10 am UTC| Commentary Central Banks

Will the Fed hike its Fed funds rate in September? Perhaps - and perhaps not. That is what the Fed signaled to the markets in its July meeting minutes. Most FOMC members judged that the conditions for policy firming had...

Greece to pay back to ECB today

Aug 20, 2015 07:08 am UTC| Commentary Central Banks

Today is pay day for Greece: the government in Athens will need to transfer 3.2 bn plus interest to the ECB. In addition, the bridge loan of a bit more than 7 bn, which kept Greece afloat for a few weeks until the...

Investors positioned for Fed hikes in FX

Aug 20, 2015 05:41 am UTC| Commentary Central Banks

In terms of positioning, USD longs are still near peak levels with every currency net short versus the dollar currently, suggesting investors are positioned for a Fed hike in FX markets. Barclays expects the Feds rate hike...

September FOMC hike still expected, but risks are higher

Aug 20, 2015 03:35 am UTC| Commentary Central Banks

Data is consistent with the beginning of policy normalization in September. Data on US activity received since the July meeting have been quite positive on balance and should push the FOMC toward near-term lift-off. This...

Minutes of Fed's July 28-29 Meeting

Aug 19, 2015 19:03 pm UTC| Commentary Central Banks

The minutes provided no clues about the Feds preparedness to raise rates as early as the September meeting. Anticipating a clearer signal but getting none, Treasuries rallied and the dollar fell. While September remains on...