Swedish Krona Month Outlook (1 – 3 Months)– CPI uptrend looks shaky

Jun 04, 2015 09:45 am UTC| Commentary

Expectations that Sweden was on the road of recovery from low inflation took a slight knock when the latest April reading of CPI showed headline prices falling 0.2% y/y. Underlying CPI was similarly soft, coming in at 0.7%...

Swiss Franc Month Outlook (1 – 3 Months)– Still following EZ political risk

Jun 04, 2015 09:20 am UTC| Commentary

SNB chair Jordan continues to call CHF "significantly overvalued" adding "it should therefore weaken over time" and that "in addition, we have emphasized we will become active in foreign exchange markets if required"...

Sterling Month Outlook (1 – 3 Months)– Grinding higher

Jun 04, 2015 09:02 am UTC| Commentary

After an initial spike in the immediate aftermath of the Conservatives unexpected election victory, GBP has continued to grind higher on mostcrosses, with the BoE TWI hitting a new post-crisis high. With the election...

Japanese Yen Outlook (1 – 3 Months)– Grinding JPY weakness

Jun 04, 2015 08:13 am UTC| Commentary

USD/JPY finally broke higher in late-May, with the rise through 124 talking JPY to its weakest since 2002. It is hard to tie the move to any particular domestic news flow. The BoJ left policy unchanged at the late-April...

1 – 3 Month Outlook of Euro – Less of a dip

Jun 04, 2015 07:53 am UTC| Commentary

Before the current programme extension expires on June 30, Greece needs to pay the IMF a total of EUR 1.6bn (with the first payment due on June 5) and it needs to pay wages and pensions, neither of which it has the money...

1-3 Month Outlook of US Dollar – Renewed upside momentum

Jun 04, 2015 07:33 am UTC| Commentary

As the focus has shifted from the weakness of the US economy in Q1, to the strength of the rebound in Q2, so the bullish-USD trend started to reassert itself in late-May and DXY has retraced more than half of the losses...

BCB hikes 50 bps to 13.75% as expected

Jun 04, 2015 07:12 am UTC| Commentary

The Brazilian real ended the day virtually unchanged vs. the USD in the run-off from the COPOM meeting rate decision at USD-BRL 3.13. Late last night, the COPOM (Brazilian central bank) hiked the Selic rate by 50 bps to...