BoC rate cut by 25bps to 0.50%

Jul 15, 2015 22:22 pm UTC| Commentary

The BoCs justification for the rate cut was on the back of a notably lower growth profile and greater downside risks to inflation compared to their April round of forecasts. H1 was clearly a disappointment to the Bank,...

US producer prices post another solid rise in June

Jul 15, 2015 21:55 pm UTC| Commentary

Producer prices rose faster than expected in June. Headline PPI was up 0.4% m/m, above consensus (0.2%) forecasts. The rise in headline PPI was driven by goods prices, but services PPI was also solid. Core PPI (ex-food and...

ECB tone EUR negative, but no sustained impact

Jul 15, 2015 21:39 pm UTC| Commentary

The ECBs dovish tone is expected to be negative for the Euro, but should not have a sustained impact. The current level of EUR/USD is consistent with data and fundamentals.Market positions in G10 FX are relatively light,...

ECB to face a complicated challenge next week

Jul 15, 2015 21:23 pm UTC| Commentary

The ECB faces a complicated challenge next week. The tightening in monetary conditions and the Greek saga leave the ECB with its finger on the trigger. Risks surrounding China certainly add to the dovish bias. But economic...

China helps ECB with dovish bias

Jul 15, 2015 21:07 pm UTC| Commentary Central Banks

At the moment, the ECB would use any argument to support its dovish message. Slower Chinese demand and resulting lower commodity prices are nice anti-tapering elements that should help tame the hawkish side of the Council....

ECB stand ready to limit sustained contagion risks

Jul 15, 2015 20:57 pm UTC| Commentary Central Banks

The ECB are more likely to be reactive rather than proactive in response to the Greek crisis. Should a negative scenario materialize in Greece before the meeting, Thursdays focus will be on how the ECB will react to limit...

Mexico Energy Reform: 14% allocation rate suggests a slow process of implementation ahead

Jul 15, 2015 20:40 pm UTC| Commentary

Today, the National Hydrocarbons Commission tendered the first set of blocks of shallow water oil fields. Only 9 firms out of 25 pre-qualified for this bid participated, as many of then decided to withdraw from this first...