Currency War Series

Banxico to deliver two more pre-emptive hikes

Dec 21, 2015 00:23 am UTC| Commentary Central Banks

Last week Banxico increased the Fondeo rate 25bp as a pre-emptive hike to protect the MXN. With inflation running at historical lows and no demand pressures on sight, Banxico is expected to deliver two more pre-emptive...

US existing home sales activity to decline further in November

Dec 20, 2015 23:56 pm UTC| Commentary

The uneven performance in the US housing market recovery is set to continue, and the pace of existing home sales activity is expected to decline a further 0.9% m/m in November to 5.31M units. This will mark the second...

Canadian retail sales to have rebounded by 0.8% m/m in October

Dec 20, 2015 23:38 pm UTC| Commentary

Canadian retail sales are forecast to have rebounded by 0.8% m/m in October. An increase in the price at the pump should support sales at gasoline stations and home furnishings are forecast to increase in tandem with a...

Emerging Market Crisis Series

Congress in recess while situation keeps deteriorating in Brazil

Dec 20, 2015 23:14 pm UTC| Commentary Politics

Congress is in recess until February, giving Brazilian assets a temporary break from the political turmoil, as there will be no further progress in President Rousseffs impeachment process, House Speaker Cunhas corruption...

New Zealand net immigration sets another record in November

Dec 20, 2015 22:52 pm UTC| Commentary Economy

New Zealands net immigration rose further in November, having topped a net 6,000 people for the first time in October. The acceleration in the last two months from already-high levels has largely been driven by a drop-off...

Currency War Series

SEK, NOK: Regional divergence intact for 2016

Dec 20, 2015 22:33 pm UTC| Commentary Central Banks

Both the Riksbank and Norges Bank left policy unchanged last week. In the near term, EURNOK is expected to trade hand-in-hand with oil prices but think a correction lower is more likely than a break higher into year-end as...

AUD and NZD: Further falls in store

Dec 20, 2015 22:13 pm UTC| Commentary

Unlike in the past, RBA Governor Stevens did not talk the AUD lower in his interview with the AFR last week. He indicated little impetus to cut policy rates further, but on the currency he simply noted that the exchange...