RBNZ to pause cutting rates

Oct 25, 2015 22:21 pm UTC| Commentary Central Banks

The RBNZ is expected to keep rates steady at 2.75% on 29 October and resume cutting rates on 10 December, when the bank next updates its economic outlook. The RBNZ has cut rates three times in a row and it is likely to...

ECB tilts the odds towards additional Riksbank easing by year-end

Oct 25, 2015 22:00 pm UTC| Commentary Central Banks

Last weeks ECB policy meeting has important ramifications for future Riksbank policy. Given the expectations for a time-extension of ECB QE, followed by a likely deposit rate cut in 2016, an increased likelihood is seen...

NJA: Scope for Asia FX outperformance vs EUR

Oct 25, 2015 21:40 pm UTC| Commentary

Surprisingly, USDAsia has traded sideways despite the EURUSD tumbling after ECBs signalled more easing to come. This may be related to the improvement in global risk sentiment and the recent pick-up in portfolio inflows...

Looking for signs from the Swiss National Bank

Oct 25, 2015 21:29 pm UTC| Commentary Central Banks

More policy accommodation by the ECB in the coming months will likely add pressure to the SNB and increase market speculation regarding further policy measures. Indeed the SNB is expected to step up FX purchases should the...

Looking for the BoJ to ease further, but it is a close call

Oct 25, 2015 21:15 pm UTC| Commentary Central Banks

Disappointing economic data, a risk of another technical recession, a flat Philips curve, and weak corporate inflation outlook led to some market expectations for further easing at this weeks BoJ meeting. Economists calls...

Busy week ahead in US

Oct 25, 2015 20:50 pm UTC| Commentary

The USD could gain ground in the weeks ahead as positioning has cleaned somewhat and next Thursday the Fed could continue signaling its willingness to start its normalization cycle no later than the 1Q of 2016. Although...

UK GDP in focus likely to lead to some EURGBP consolidation

Oct 25, 2015 20:33 pm UTC| Commentary Technicals

EURGBP is expected to stabilize somewhat this week following last weeks sharp depreciation. With little data of interest, the main focus will be the release of the preliminary Q3 GDP (Tuesday). A 0.5% q/q growth rate is...