FxWirePro: RBI designs new MPC to ensure policy actions on track to keep inflation targets – INR trading baskets

Sep 23, 2016 12:17 pm UTC| Central Banks

RBI finalized the make-up of its new six-member monetary policy committee (MPC). They are three government nominees who are distinguished economists and three RBI members. In a split decision, the governor has the...

Higher inflation and better growth prospects in Norway imply less need for additional rate cuts

Sep 23, 2016 12:17 pm UTC| Insights & Views Economy Central Banks

Norges Bank earlier this week left the key policy rate unchanged and revised higher the interest rate path in line with market expectations. Rate path was raised by 24bps in Q4 2016 and 12-19 bps in 2017-19. The rate path...

FxWirePro: EM FX basket, treasury and corporate effects

Sep 23, 2016 11:35 am UTC| Central Banks Insights & Views

The corporate bonds in emerging market continue to outperform DM equivalents. However the supply advantage is fading, and currency movements are not big enough to justify the spread tightening. We still see EM corporate as...

FX Hedging Strategy Series

FxWirePro: Test put/call parity of AUD/NZD options before choosing hedging strategy

Sep 23, 2016 09:17 am UTC| Research & Analysis Central Banks

We know that bullish trend has again resumed and it likely to drag further to higher levels up to 1.0705 levels. Uptrend seems to be intensified especially after RBNZ stood pat in its yesterdays monetary policy, leaving...

Negative Rates Series

Worrisome Signs Series

Un-shortable market will end in another big short

Sep 23, 2016 07:05 am UTC| Commentary Central Banks

This year, U.S. benchmark stock index is up around 5.67 percent and this is the eight year running; so it wont be anexaggeration to call it an un-shortable market. However, the biggest concern is not the consecutive rise...

FxWirePro: RBNZ defers OCR cut but expectations still linger - Arrest NZD/JPY bearish rout via vega backspreads on breach of 73.808

Sep 23, 2016 06:02 am UTC| Research & Analysis Insights & Views Central Banks

Dear readers, we had explicitly specified in our previous post toexpect more dips up to the next support only at 73.272 levels and upon breach this level, bears may even drag up to 72.239 levels again, and it seems like...

Vital Signs Series

Lowe makes the case for 'good' government debt

Sep 22, 2016 22:46 pm UTC| Insights & Views Economy Central Banks

Vital Signs is a weekly economic wrap from UNSW economics professor and Harvard PhD Richard Holden (@profholden). Vital Signs aims to contextualise weekly economic events and cut through the noise of the data impacting...