UK monetary policy uncertainty replaces fiscal uncertainty
Jun 25, 2015 12:22 pm UTC| Commentary
The combination of weak domestic wage pressure and falling food and energy prices has caused a further postponement of rate tightening in the UK. The first hike now priced for Q3 16.According to Barclays, the MPC is likely...
Greece remains a risk but periphery offers value outright
Jun 25, 2015 12:08 pm UTC| Commentary
The widening in EGB spreads because of concerns regarding Greece has been across the board in the periphery and core/semi-core spaces, with 10y Italian and Spanish spreads versus Germany widening by c.45bp and 10y French...
Notable sell-off in euro bunds is unlikely
Jun 25, 2015 12:01 pm UTC| Commentary
The economic outlook in the euro area has been improving gradually since the beginning 2015. According to Barclays, there has not been a significant sustainable shift to qualify the recent sell-off as fundamental. Indeed,...
CNY devaluation unlikely, but stay long USD/CNY
Jun 25, 2015 11:20 am UTC| Commentary
China government is easing monetary and fiscal policy to support economic growth, which remains a concern, to help curb deflation risks while refraining from raising USDCNY fixings.Despite weak external demand, the...
China to lower borrowing costs
Jun 25, 2015 11:14 am UTC| Commentary
Chinese policymakers have begun to work on lowering borrowing costs in three ways, easing monetary policy, deepening capital markets and transferring risk from government corporates to the government.This should be...
Further JPY depreciation looks unlikely
Jun 25, 2015 11:09 am UTC| Commentary
The JPY appears to be caught between two powerful and opposing forces, on one side, the BoJs QQE program and portfolio outflows by Japanese investors. On the other, JPYs extraordinary cheapness, which is attracting...
Taiwan CBC waits calmly for late summer lift
Jun 25, 2015 11:07 am UTC| Commentary
The Central Bank of Republic of China (Taiwan) kept its policy rate unchanged at 1.875% at its June quarterly board meeting, in line with our expectations and consensus. This is the 16th consecutive meeting at which the...