Clear downside bias for New Zealand dollar

Nov 02, 2015 02:34 am UTC| Commentary

According to its monetary policy statement for Sep 2015, the central bank (RBNZ) assumed that the NZD would fall over the next year to about 65 on a trade-weighted Index (TWI) basis. The RBNZ TWI was last reported at 72 on...

Monetary policy divergences is still around

Nov 02, 2015 02:28 am UTC| Commentary

Since our last quarterly published on 9 Sep, currencies enjoyed a relief rally from the turmoil in summer from two factors. First, expectations for the Fed rate lift-off was pushed out into 2016 from 2015 on a dovish FOMC...

Nothing's changed for Asia ex Japan currencies

Nov 02, 2015 02:26 am UTC| Commentary

Asian ex Japan currencies (AXJ) started to stabilize with the CNY in late August, and later on a more dovish FOMC statement on 17 Sep. The relief rally, however, did not turn up until October. The market only started to...

Will the Fed finally pull the trigger?

Oct 30, 2015 18:58 pm UTC| Commentary

The past two weeks have highlighted the divergence between the Fed and the rest of the world. Just one week after the ECB pre-announced another round of easing at the upcoming December meeting, the Fed this week sent a...

Danish central bank barricades itself when the ECB opens the floodgates

Oct 30, 2015 18:28 pm UTC| Commentary

The ECBs Governing Council has once again opened the floodgates for monetary easing. This opening was announced by Mario Draghi at the ECB meeting on 22 October when he, prepared the financial markets for further measures...

Dollar to climb further against euro and yen

Oct 30, 2015 18:10 pm UTC| Commentary

Some commentators have suggested that the prospect of an earlier rate hike from the Fed and the resulting appreciation of the US dollar will significantly reduce the pressure on the ECB and BoJ to ease policy further....

Bank of Japan kept the powder dry

Oct 30, 2015 17:55 pm UTC| Commentary

The Bank of Japan surprised markets as it refrained from adding more stimulus at the monetary policy meeting this morning. Todays stance from the BoJ suggests that the bar for additional easing is very high and we now...