China Crisis Series

China’s industrial production likely weakened again in first two months

Mar 11, 2016 12:49 pm UTC| Commentary

Chinas industrial production in January and February is likely to have weakened again to 5.5% from Decembers 5.9% y/y, amidst weakening manufacturing PMIs. The data for the first two months of 2016 are expected to give...

Fed Hike Aftermath Series

US Fed unlikely to hike rates next week, but high probability of hike in April or June

Mar 11, 2016 12:39 pm UTC| Commentary Central Banks

Since FOMCs January meeting, financial conditions have noticeably eased. The committee had become more dovish in January, erasing around half of the tightening that came after the first hike in December. However, according...

Fundamental Evaluation Series

Fundamental evaluation series: GBP/USD yield divergence review 2016

Mar 11, 2016 12:35 pm UTC| Commentary

In the past, Pound/Dollar has shown closer affinity to yield divergence, however its relationship hasnt hold always against US Dollar since it is not a traditional funding currency. Nevertheless, relationship with 2 year...

Briferendum Series

Briferendum series: Why FTA with UK will be in EU’s interest too?

Mar 11, 2016 12:29 pm UTC| Commentary Economy

When it comes to Brexit, biggest uncertainty is the legality or rather future of current trade deals. Britain currently has a free trade agreement (FTA) with European Union that helps it to cater to single market. Moreover...

Currency War Series

Bank of Mexico to follow US Fed’s policy strategy, to keep rates on hold next week

Mar 11, 2016 12:13 pm UTC| Commentary Central Banks

The Bank of Mexico is expected to follow the US Feds move and keep the overnight rate on hold at 3.75% next week. It is likely to issue a relatively dovish statement in terms of growth but slightly more hawkish in terms of...

Euro strength inconsistent with the comprehensive ECB package, an overreaction, downside to resume

Mar 11, 2016 12:09 pm UTC| Commentary Central Banks

The ECB fired its bazooka yesterday, and undoubtedly a powerful one, yet markets were unimpressed. As expected, the ECB cut its deposit rate by 10 basis points, further into negative territory to -0.4%. The marginal...

Australian economy to perform strongly in 2016 despite challenging environment

Mar 11, 2016 11:54 am UTC| Commentary

The Australian economy is expected to perform strongly in 2016 in a challenging environment. Down side risks for the economy have reduced based on the better-than-expected December 2015 annual GDP growth and the recent...