FX Hedging Strategy Series

FxWirePro: ECB continues to cushion EURO strength, OTC indicates EUR/CAD’s bullish risks despite crude strength, DDPS ideal choice for hedging

Oct 13, 2016 10:12 am UTC| Central Banks Commentary

As occurred in the US before the Treasury taper tantrum in 2013, ECB QE has created a valuation and positioning problem that biases the euro to appreciate on even subtle changes in ECB policy. Typically, QE programmes...

Australia consumer inflation expectations improve in October, signal fruitful RBA policies

Oct 13, 2016 10:08 am UTC| Commentary Economy Central Banks

Consumer inflation expectations in Australia improved during the month of October, for the first time in three months, signaling that central bank policies were finally translating into faster price growth. Australia...

Better-than-expected tax amnesty flows reduce downside risks to Indonesia's growth; BI to slash rates in Oct

Oct 13, 2016 06:49 am UTC| Commentary Economy Central Banks

The better-than-expected tax amnesty flows at the end of the first phase of the program (1 July to 30 September) have reduced the downside risks to growth given that the extent of cuts in expenditure will be smaller....

Bank of Korea holds key rate at 1.25 pct, cuts inflation forecast for this year

Oct 13, 2016 04:59 am UTC| Commentary Central Banks

As widely anticipated, the Bank of Korea Monetary Policy Board today decided to keep the key interest rate on hold for the fourth consecutive month at 1.25 percent. The central bank also cut its inflation projection for...

Little probability of rate cut from Bank of Thailand this year

Oct 12, 2016 12:01 pm UTC| Insights & Views Central Banks Economy

Bank of Thailand (BoT) has kept its interest rate unchanged at 1.5 percent since June 2015. The central bank is more inclined to maintaining loose monetary conditions via a weaker THB rather than lower rates. And with two...

FX Hedging Strategy Series

FxWirePro: EUR/JPY 3m call ladders on divergence between 2m IVs and RVs with reasonable risk-reward ratios

Oct 12, 2016 07:51 am UTC| Central Banks Research & Analysis

We continue to expect the euro to tick higher into 2017 despite Fed tightening, particularly given the ECBs misgivings about its QE programme. The forecast profile is little changed from the trajectory, the proposed EURJPY...

BCB unlikely to begin easing monetary policy before end-2016

Oct 11, 2016 11:34 am UTC| Commentary Central Banks

Brazilian inflation last year skyrocketed along with the depreciation of the Brazilian real. By the beginning of this year, the consumer price index levels reached a high of around 10.7 percent year-on-year. This is quite...