
Jun 06, 2017 10:10 am UTC| Research & Analysis Insights & Views Central Banks
The sharp appreciation of CNH was a major development in FX markets this week. Coming on the heels of a change in the PBoCs daily USDCNY fix mechanism the previous Friday, markets seem to have interpreted these moves as...

Jun 06, 2017 08:08 am UTC| Research & Analysis Insights & Views
AUDUSD contained in a 0.7600-0.7700 range. AUDUSD medium term perspectives: Although the pair bounces off the 0.7450, the upside area should be limited to 0.7600. RBA has limited the downside on AUDUSD during the next...
Jun 06, 2017 07:36 am UTC| Central Banks Insights & Views
The Reserve Bank (RBA) left the cash rate unchanged at 1.50% at its board meeting today. The decision was widely expected by markets. A key stand out was the RBAs sanguine view in regards to the domestic economy. The...

FxWirePro: Why is market vol so low despite global monetary policy season?
Jun 06, 2017 06:20 am UTC| Research & Analysis Insights & Views Central Banks
Within next fortnight or so, we have series of monetary policy meetings lined up. A very low supply of economic surprises currently is by itself enough to explain the low level of market volatility. RBAs cash rate today...

FxWirePro: Macro trade recommendations – Stay short in AUD vs CHF and EUR, long in CHF vs USD
Jun 05, 2017 14:23 pm UTC| Research & Analysis Insights & Views Central Banks
AUD money markets rates have rallied by more than any other G10 currency over the past month (see above chart). In the process, the front-end of the curve has inverted again as rate cuts have started to be priced again...

Jun 05, 2017 12:20 pm UTC| Research & Analysis Insights & Views
The EURUSD vols have been belligerently sold off in the aftermath of the French presidential election. The markets hailed the election of Macron, shielding a very pro-European programme. The majority of the risk was...

FxWirePro: IVs fumble in Euro options owing to election risk premium in the Italian edition
Jun 05, 2017 11:52 am UTC| Research & Analysis Insights & Views
Euro options and election risk premium the Italian edition Election risk premium is once again the story in Euro options, this time a potential September/October vote in Italy. EUR-and EUR-cross options spanning September...