RBA likely to cut by 25bp on Tuesday owing to recent weakness in employment figures, says ANZ Research
Indonesia’s headline inflation eases to 3.39 pct y/y in September, following two straight months of acceleration
Australian bonds suffer tracking U.S. Treasuries on hopes of successful Brexit deal; September labour report eyed
U.K. headline inflation remains unchanged at 1.7 pct in September, likely to stay below 2 pct in near-term
KRW likely to recoup more of year-to-date losses along with yuan appreciation in coming weeks, says Scotiabank
Fed’s dovish stance and balance sheet re-expansion likely to weigh on dollar in months ahead, says Scotiabank
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Australia’s rise in September employment remains smallest in seven months; jobless rate likely to drift higher in near-term
Weak U.S. growth outlook provides Fed flexibility to offer more “insurance” rate cuts, says ING Economics
RBI likely to adopt further 50bps of cumulative cuts going forward; policy statement remains dovish: ANZ Research
MAS to slightly reduce slope of S$NEER policy band to around 0.5 pct at the upcoming semi-annual policy meeting, says Scotiabank
Danmarks Nationalbank cuts interest rate on certificates of deposit to -0.75 pct
Danish central bank, Danmarks Nationalbank today cut the interest rate on certificates of deposit to -0.75 percent. It kept the current account rate and the lending rate on hold at 0.00 percent and 0.05 percent, respectively. The central bank also kept banks’ current account limit the same. This move follows the 10 basis point rate cut from ECB announced earlier today.
“The decision brings the key policy rate in Denmark back down to the recent record-low level of minus 0.75 percent. We do not look for further interest rate cuts from the ECB at present and, thus, we expect the key policy rate to stay at minus 0.75 percent for 12M”, stated Danske Bank in a research report.
Moreover, the ECB also introduced a tiered deposit system. This might possibly hamper part of the pass through of the rate cut to market rates. Therefore, there is a risk that the spread between DKK and EUR rate might broaden further after today and the discount in EUR/DKK FX forwards might increase. This might in turn tend to push EUR/DKK higher.