Norway's core September inflation rate likely to be 3%

Oct 09, 2015 07:09 am UTC| Commentary

If there is a central bank amongst the G10 who can afford to sit back and relax in view of inflation close to or even above target then it must be Norges Bank. But it does not. It recently preferred to cut interest rates...

Neither FOMC minutes nor Williams helpful for the dollar

Oct 09, 2015 07:05 am UTC| Commentary

In the end the FOMCs meeting minutes did not provide any major surprises for the market and therefore no major let-up for the USD. Certainly this morning USD weakness is persisting. And indeed one does not exactly get the...

BRL likely to depreciate further

Oct 09, 2015 06:55 am UTC| Commentary

The higher than expected Brazil inflation, a collapse in productivity/investment, and a persisting current account deficit impacted BRL. The implied subsidy from the public sector to the private sector will continue to...

Catch 22 in Saudi Arabia

Oct 09, 2015 06:50 am UTC| Commentary

According to market rumors which circulated yesterday budget cuts are finally on the table in Saudi Arabia. How could it be any other way with a budget deficit in excess of 20% of GDP? The large deficit is the result of...

Downside bias likely in USD-CNH

Oct 09, 2015 06:48 am UTC| Commentary

PBoC set USD-CNY fixing rate at 6.3493 this morning, compared with 6.3505 yesterday. In the meantime, USD-CNH lowered to the lower 6.34 area overnight driven by dollar weakness.Chinas central bank set the fixing rate...

Turkey's lira helped by positive political and macro news

Oct 09, 2015 06:44 am UTC| Commentary

The lira has strengthened sharply this week, with the TRY basket (50:50 USD:EUR) approximately 5% stronger now than its bottom in mid-September. A part of this rally simply reflects the risk on rally surrounding global EM,...

Mexican peso likely to appreciate gradually next year

Oct 09, 2015 06:41 am UTC| Commentary

The beginning of Mexicos tightening cycle early next year will likely help support the peso.On average, currencies would take 32 months from peak overvaluation to bottom undervaluation. The Mexican peso is close to its...