Banxico unlikely to tolerate excessive MXN weakness
Feb 24, 2016 15:43 pm UTC| Commentary Central Banks
Mexicos GDP data for Q4 2015 came in line with expectations at 2.5% y/y. Remarkably, the Q3 data were revised higher to 2.8% y/y and 0.8% m/m, confirming robust Mexican fundamentals . Decent growth and modest inflation...
BOE governor expresses worries over Pound
Feb 24, 2016 09:21 am UTC| Commentary Central Banks
After the initial jump over deal announcement last week, Pound has dropped sharply against all of its major trading counterparts as well as emerging market currencies. Since Friday, Pound has dropped close to 3% against...
Riksbank minutes - what do they mean for the Krona?
Feb 23, 2016 15:05 pm UTC| Commentary Central Banks
Minutes of the Riksbank meeting of Feb 11th published yesterday showed that the decision taken by Riksbanks Executive Board is a voting result and not a consensus decision. On 11th February the Riksbank lowered its key...
Lower inflation expectations could trigger central bank actions
Feb 22, 2016 11:50 am UTC| Insights & Views Central Banks
Long-term inflation expectations in both the US and the euro area have trended lower for a long time and at 1.5% are clearly below inflation targets (2% for the US and below but close to 2% for the euro area). While Fed...
Will BOK intervene to curb KRW volatility?
Feb 19, 2016 16:03 pm UTC| Commentary Central Banks
The South Korean Won fell 5.3% against the US dollar year-to-date, emerging as the worst performer among Asian currencies. Geopolitical tension triggered capital outflows from the economy. Global funds have pulled $2.8bn...
CHF value justifies further SNB action?
Feb 19, 2016 14:41 pm UTC| Commentary Central Banks
Despite the turmoil in the global equity markets, the Swiss Franc has remained on a weakening trend since the start of the year. The temporary strength seen in early February on volatility and Fed re-pricing is unlikely to...
It is too late for Banxico to stop peso’s decline via rate hike
Feb 19, 2016 07:19 am UTC| Commentary Central Banks
The Bank of Mexico unexpectedly raised its overnight rate to 3.75% yesterday in a bid to support its weakening currency. The timing of the rate rise was a surprise to markets. The inflation situation and state of the...
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