Currency War Series

Turnbull to banks: pass on whole interest rate cut

Aug 03, 2016 05:15 am UTC| Insights & Views Central Banks

Prime Minister Malcolm Turnbull has sternly told the banks they should pass on the whole of Tuesdays rate cut - or their chief executives must explain why they are not doing so. After the Reserve Bank cut the cash rate...

FX Hedging Strategy Series

FxWirePro: Can Riksbank factor GDP in September or still dubious on inflation – Hedge SEK’s appreciating risks in Q3 and Q4

Aug 02, 2016 12:34 pm UTC| Insights & Views Central Banks

EURSEK has continued higher over the last month, trading a shy below 9.60, which is the highest level seen since last autumn. The growth in Sweden is solid and inflation has risen. Despite the positive trend, the...

Markets bet on another RBA rate cut in early 2017

Aug 02, 2016 12:18 pm UTC| Insights & Views Economy Central Banks

Earlier on Tuesday, the Reserve Bank of Australia (RBA) decided to cut its benchmark interest rate by 25 basis points to a record low level of 1.50 percent. The decision was largely in-line with market expectations. The...

Bank of England likely to announce easing package in August meeting

Aug 02, 2016 12:10 pm UTC| Commentary Central Banks

The Bank of England is likely to announce a package of easing measures this week, noted Danske Bank in a research report. The central bank had disappointed a bit during its Julys meeting by keeping its monetary policy on...

FxWirePro: Yen vols duly rolled over owing to underwhelming BoJ but IVs likely to intensify during September meeting

Aug 02, 2016 11:22 am UTC| Research & Analysis Insights & Views Central Banks

Wise to note that 1M USDJPY ATMs fell from 15.0 pre-meeting to 11.5, significantly undershooting the 1-day forward vol prediction (11.85) despite a 1.5% spot decline on the day, which ought to have provided a modicum of...

FxWirePro: UK PMIs seem to threaten GBP’s prospects, MPC of BOE response crucial stimulus for 1W IVs of sterling crosses

Aug 02, 2016 09:24 am UTC| Central Banks Insights & Views

Before we begin, lets recall as to how the Bank of England confused the markets in previous MPS. There was awidespread surprise when the MPC chose to leave rates unchanged at the 14 July meeting. But we needed wait no...

FX Hedging Strategy Series

FxWirePro: Cable skew normalised too much but tail risk still on cards – Stay hedged with zero or reduced cost ahead of BOE meet

Aug 02, 2016 07:38 am UTC| Insights & Views Central Banks

Needless to specify, GBP vols have still been flying with sky rocketed pace no matter what both prior and post-Brexit events, but this time these IVs are also owing to BOEs monetary policy decision, however, the contracts...