Norges Bank’s ‘uncertainty premium’ weighed on NOK

Oct 30, 2015 07:57 am UTC| Commentary Central Banks

Norges Bank (NB) has really surprised the market several times over the past 12 months. For example, the market was strongly positioned for a rate cut at the policy meeting in March 2015 but when NB stayed on hold, the NOK...

Euro zone CPI will hardly support the Euro

Oct 30, 2015 07:50 am UTC| Commentary

Euro areas October inflation figures are awaited. The situation is quite similar to that in Japan. The rate of inflation is likely to remain slightly negative (-0.1% yoy). The market is somewhat more optimistic and expects...

USD/CNY drops due to PBoC’s intervention

Oct 30, 2015 07:46 am UTC| Commentary

USD/CNH dropped by almost 1% overnight due to PBoCs aggressive intervention. This is somewhat inconsistent with the market trend yesterday as dollar strengthened against most of the majors following Feds hawkish statement....

No signs of inflation but BoJ does not expand QE

Oct 30, 2015 07:46 am UTC| Commentary Central Banks

There will be major problems because central banks world-wide are interfering in areas which they had better stay away from, as they cannot really influence developments. Nevertheless, the BoJs decision of last night is...

Monetary policy first line of defense for Norges Bank

Oct 30, 2015 07:40 am UTC| Commentary Central Banks

Norges Bank (NB) operates a so-called flexible inflation mandate that allows Governor Øystein Olsen to work towards both bringing inflation close to the long-term target of 2.5% and stabilising growth and...

China’s service sector taking over from manufacturing

Oct 30, 2015 07:27 am UTC| Commentary Economy

The Chinese economy grew by 6.9% in Q3 15, which was a tad better than expected, given the recent raft of disappointing data and news out of the Middle Kingdom. However, the figures conceal a gradual shift in demand...

Fed likely to postpone first rate hike to January

Oct 30, 2015 07:22 am UTC| Commentary Central Banks

U.S. economic data have disappointed over the past month. Industrial and export data indicate a slowdown and retail sales and employment growth have also eased. While long the bright spot in a weak global economy, the...