Fed Hike aftermath Series: Hike probabilities over coming meetings

Jan 28, 2019 10:32 am UTC| Commentary Central Banks

FOMC followed through its promise and hiked rates four times in 2018 and forecasted two more rate hikes for 2019. Current Federal funds rate - 225-250 bps (Note, all calculations are based on data as of 28th...

FxWirePro: NZD/USD projections lower in 2019 as USD likely to get cushion from Fed but Kiwis vulnerable on dovish RBNZ and macro outlook

Jan 28, 2019 07:59 am UTC| Research & Analysis Central Banks

NZD has actually performed better than expected over 4Q2018, as a rebound in domestic activity data offset global drags on high beta FX. Still, it is reckoned that the global risks play less favorably for NZ than they do...

ECB’s softer tone amid downside risks to Eurozone growth could suppress EUR’s strength for now, says Scotiabank

Jan 28, 2019 07:15 am UTC| Commentary Central Banks Economy

The ECBs softer tone amid downside risks to the Eurozone growth could suppress the EURs strength for now. ECB President Mario Draghi said in an opening statement at his news conference last Thursday that the risks...

Explainer: South Africa's central bank -- ownership, mandate and independence

Jan 27, 2019 14:45 pm UTC| Central Banks Economy

In recent months, various debates about the South African Reserve Bank have focused broadly on three aspects its shareholding, its mandate and its independence. The three debates are somewhat convoluted. They are...

FxWirePro: Hedge EUR/GBP via options strategy on persisting geopolitical setbacks

Jan 25, 2019 10:56 am UTC| Research & Analysis Central Banks

3-way options straddle seems to be the most suitable strategy for EURGBP contemplating some geopolitical aspects. The rationale:Well, lets just quickly glance at OTC outlook before looking at the options...

FxWirePro: ECB downplays recessionary risks, maintains ‘dovish status quo’ monetary policy - EUR/USD options short set-up on luring OTC indications

Jan 25, 2019 08:20 am UTC| Research & Analysis Central Banks

TheECBs Draghi highlighted increased downside risks on a host of uncertainties and near term growth is expected to be weaker than previously expected. The euro made a new low for 2019 at 1.1304 on bets that the European...

FxWirePro: Norweign Krone likely to outperform on Norges hawkish status quo and other constructive driving forces – Options trade perspectives

Jan 24, 2019 13:54 pm UTC| Research & Analysis Central Banks

Norges Bank (NB) left the sight deposit rate unchanged at 0.75%, in a decision widely expected by both markets and analysts. However, it already sounded a little more cautious by lowering the rate path slightly for the...