Minutes to provide BCB’s take on BRL and its implications for inflation

Sep 10, 2015 05:48 am UTC| Commentary

The BCB kept the Selic target unchanged at 14.25% at its September Copom meeting. The decision was not surprising in light of the hint given at the July Copom meeting. Although the BCB would like to maintain the Selic at...

Further BoK rate cut unlikely in September

Sep 10, 2015 05:47 am UTC| Commentary

However, a further rate cut is unlikely in September, or in October along with the forecast downgrade, as the rate cut could harm financial stability, both externally and internally. Monetary easing in the wake of the...

BoK to maintain a neutral stance to ensure financial stability

Sep 10, 2015 05:43 am UTC| Commentary

A dovish member from the Bank of Korea (BOK) said that the monetary authorities should prepare for all the available policy tools. The hawkish member emphasised the BoKs official forecast that headline inflation will rise...

Rand most vulnerable currency in EM (Monthly Outlook, 1-3 months)

Sep 10, 2015 05:41 am UTC| Commentary

The South Aferican rand has been one of the most vulnerable currencies in EM from this recent bout of risk aversion. Since June, risk aversion increased from the lows observed in the past two years to the highs since early...

Domestic demand is key for EUR/USD outlook

Sep 10, 2015 05:38 am UTC| Commentary

The slow pace of EUR/USD recovery will continue in coming months. While developments in China pose a downside risk, the links should not be overstated. Domestic demand remains supported by the ECBs easing...

EUR/USD to hit 1.07 in coming months

Sep 10, 2015 05:35 am UTC| Commentary

EUR was viewed as it was turning into a risk off proxy, highlighting the turn in correlations that means EUR/USD would rally if equities sold off. The late August turmoil was a good chance to see that in practice. EUR/USD...

USD has room to rise in 2016

Sep 10, 2015 05:12 am UTC| Commentary

There is still a widespread view that USD rallies ahead of the first Fed hike and sells off after. While this holds on average, the degree of dispersion suggests it would be unwise to rely on it."It depends much more on...