China Crisis Series

Outflow of Fx reserves continues, and so does PBoC's dilemma

Feb 09, 2016 14:33 pm UTC| Commentary Central Banks

Despite the impressive $ 3.2 trillion PBoCs FX holdings, the speed at which the PBoC once again lost FX reserves in January is quite alarming. Since top levels reached in the summer of 2014, 19% of the PBoCs reserves have...

Is it Yellen or Zuma? The pace of the ZAR rout likely to ease as investors eye on policy minutes and SA budget insights

Feb 09, 2016 12:52 pm UTC| Commentary Central Banks

Although the ZAR oscillated within a range of 15.77-16.43/USD range from last week, it went into the weekend largely unchanged on the week at 15.85/USD. The ZAR initially weakened during the first half of the week in...

Markets now focus on Fed’s Yellen for further cues

Feb 09, 2016 12:23 pm UTC| Commentary Central Banks

The Fed is in a comfortable position to weaken its currency much more effectively as compared to the ECB. Even though the central bank is widely expected to raise interest rates, the fear among the markets that the Fed...

Currency War Series

Will Fed follow ECB, BOJ to negative territory?

Feb 09, 2016 07:33 am UTC| Commentary Central Banks

Several analysts point out that there is a possibility growing that FED might follow European Central Bank (ECB) and Bank of Japan (BOJ) policymakers in introducing negative rates on excess reserve. Their argument is that...

FxWirePro: EUR/SEK extends higher after breach of trendline resistance, good to buy dips

Feb 09, 2016 07:17 am UTC| Technicals Central Banks

Swedens Riksbank meets this Thursday, 11th February to decide its monetary policy settings. Economists are split 50/50 on no change in rates or a 10-15bp cut. The easing is broadly priced in, market is now pricing in...

Currency War Series

FX Hedging Strategy Series

FxWirePro: Riksbank likely to ease with further 10 bps, expect higher Norwegian inflation – hedge SEK and NOK for depreciation risks

Feb 09, 2016 07:02 am UTC| Technicals Central Banks

We look ahead for the Riksbank easing monetary policy further at its Thursday meeting, lowering its repo rate by 10bp, to -0.45% vs consensus: 0bp, market pricing: -7bp, given downside risks to inflation. A repo rate...

More than 6 trillion bonds in negative yield as 10 year JGB drops to negative

Feb 09, 2016 06:44 am UTC| Commentary Central Banks

Is it BOJ or run to safety? Doesnt matter. Bank of Japans bid to flatten yield curve is turning out to be huge success but Yen and Nikkei are not at levels of their desire. Nikkei cash is down more than 5% today, and...