Reshaping NAFTA could be good for Mexico's economy (and Brazil's and Argentina's, too)
Apr 18, 2017 13:39 pm UTC| Insights & Views Economy
Among other threats targeting Mexico during his election campaign, US President Donald Trump harshly criticised the North American Free Trade Agreement (NAFTA), a 23-year-old tripartite deal that removed tariffs and...

FxWirePro: China to drive Q2 demand boost in industrial metals but not standalone
Apr 18, 2017 13:20 pm UTC| Research & Analysis Insights & Views
Over the past 10 years, quarterly data show that on average global demand across the base metals we cover has increased between 2.5% and 11% QoQ in the second quarter (refer above chart). With the exception of nickel,...
Thatcher, Reagan and Robin Hood: a history of modern wealth inequality
Apr 18, 2017 12:48 pm UTC| Insights & Views Economy
Persistently high rates of income or wealth inequality are bad for social cohesion, political inclusion and crime. The evidence for this is overwhelming. Often, stubbornly high income inequality partly reflects deep...
Apr 18, 2017 12:23 pm UTC| Insights & Views
Chinas Q1 GDP growth came in better than expected, at 6.9% y/y. Chinas investment accelerated in Q1 while consumption softened. In our view, investment has accelerated due to a delayed effect of the property boom, while...

FxWirePro: Favour optionality in CHF longs vs USD via 3m put spread and EUR via cash
Apr 18, 2017 11:50 am UTC| Research & Analysis Insights & Views
Our longstanding bullish view on CHF has been motivated by decent domestic data both on the activity and inflation front which should eventually result in reduced FX intervention activity by the SNB. The past week...

U.S. inflation softens due to temporary factors, should not worry the Fed too much
Apr 18, 2017 11:37 am UTC| Insights & Views Central Banks
A report by the Labor Department on Friday last week showed U.S. Consumer Price Index dropped 0.3 percent in March, the first decline since February 2016. March US CPI inflation was much weaker than expectations for an...

FxWirePro: EMFX basket and hedging perspectives
Apr 18, 2017 08:59 am UTC| Central Banks Insights & Views
In BRICS FX bloc, ZAR weakness has probably run its course while the RUB benefited from the improving macro story in Russia and, more recently, from the firm recovery in oil prices with Brent bouncing above $55. We...