Central bank of Russia set to halt monetary easing

Aug 27, 2015 00:56 am UTC| Commentary Central Banks

As Russia was the earliest of a group of commodity-oriented emerging market economies to abandon the peg, the current turmoil has not surprised Russian markets, neither has the spike in the roubles volatility, which has...

New Zealand recorded a trade deficit of $649m in July

Aug 27, 2015 00:45 am UTC| Commentary

New Zealand recorded a trade deficit of $649m in July, a slightly larger deficit than the markets expectation. This saw the annual trade deficit narrow to $2,690m. The exports picking up by 8% (adjusted for seasonal...

Euro still supported

Aug 26, 2015 23:31 pm UTC| Commentary

In Asian hours risk sentiment stabilized, mainly on the back of the PboC easing monetary policy yesterday. Even if the latest development appears to have stabilized market sentiment, it seems too early for sustainably...

Russia’s budget is at risk on overvalued rouble

Aug 26, 2015 22:41 pm UTC| Commentary

Introducing the roubles free float has mitigated the impact of the oil price shock on the Russian economy much better than in the 2008-09 crisis. The economy contracted 3.4% y/y in H1 15, better than the market...

US durable goods orders rose 2.0% m/m in July

Aug 26, 2015 22:19 pm UTC| Commentary

A very strong and better than consensus print for durable goods orders (headline 2.0% vs est. -0.4%) was consistent with the robust capex expectations for Q3 (of ~8%). That added another point in the run of solid data...

Weak global growth suggests limited rate hikes for SARB

Aug 26, 2015 21:59 pm UTC| Commentary

The global rebound has sputtered as even a rate cut from China failed to calm nerves. After having dipped below 13.00, USD/ZAR opens at 13.10, waiting for direction. Volatility remains elevated in the crosses: EUR/ZAR...

China becomes the key challenge to ECB’s objectives

Aug 26, 2015 21:14 pm UTC| Commentary

Even with developments broadly in line with expectations, the recovery remains disappointing, as noted in the latest ECB Monetary Policy Accounts, with inflation unusually low. Adding the latest developments in China will...