
FxWirePro: Mounting IVs of USD/MXN on lingering expectations of Banxico’s rate hike
Mar 30, 2017 13:01 pm UTC| Central Banks Insights & Views
As regards the Bank of Mexicos (Banxico) rate decision today analysts expect a further rate hike by at least 25bp. As this is largely priced in on the market the peso is unlikely to appreciate notably in thecase of a 25bp...
Mar 30, 2017 12:47 pm UTC| Central Banks Insights & Views
In the recent past, markets have been so cautious on the potential impact of Fed balance sheet normalization on interest rate volatility markets. At a high level, though in principle the return of significant mortgage...

Mar 30, 2017 12:33 pm UTC| Central Banks Insights & Views
The statement from BoCs March 1st meeting reiterated the point that, unlike the US, Canada was an economy that continues to be beset by material excess economic slack, and thus warrants a policy stance that remains very...

Softer inflation data from Spain and Germany dampen speculation of earlier unwinding of ECB stimulus
Mar 30, 2017 12:21 pm UTC| Insights & Views Economy
National CPI inflation releases today from Germany, eurozones largest economy point to price growth falling back from a four-year high this month. Flash German inflation data considered as a precursor to Fridays Eurozone...
Mar 30, 2017 10:42 am UTC| Insights & Views
The inventory figures this week were bearish for crude, bullish for gasoline and diesel, and neutral for jet kerosene. However, on balance, the statistics were bullish, because total US commercial stocks, including crude...
FxWirePro: French hedges – Front end gamma, EURIBOR fly and straddle
Mar 30, 2017 09:33 am UTC| Central Banks Insights & Views
The political risk in 2Q and the ECB have been lingering as the main drivers of Euro area rates, while Brexit negotiations are expected to take the back stage as Article 50 is triggered next week. We anticipate receding...

Mar 30, 2017 09:02 am UTC| Insights & Views
The British Governments decision to trigger Article 50 and start the process of leaving the EU is making all the headlines, of course. But the wider market story is that yet again, volatility ahs collapsed. Both the Vix,...