FxWirePro: BoC’s dovish tone add stimulus to oil driven currency portfolios
Oct 26, 2016 12:30 pm UTC| Insights & Views
The Bank of Canada stays on hold but retains dovish tone. The Bank of Canada left its benchmark overnight rate unchanged at 0.5 pct at its October 2016 meeting as widely expected. The policymakers said the growth outlook...
FxWirePro: Can Cable call spreads with lengthier tenors outperform Article 50?
Oct 26, 2016 10:36 am UTC| Central Banks Commentary
Although the sterling came under notable pressure yesterday ahead of the hearing of Bank of England governor Mark Carney in front of the House of Lords committee. However, Carney did not provide any news, i.e. he did not...
Oct 26, 2016 07:36 am UTC| Central Banks Commentary
We foresee the divergence in monetary policies of Fed and BoJ has been helping to weaken the yen to 110 to 120 against thedollar by the end of 2017. The Japanese central bank switch of focus to controlling the...
FxWirePro: Mounting expectations of RBNZ’s OCR cuts to stimulate Kiwi dollar turbulence
Oct 25, 2016 13:36 pm UTC| Central Banks Commentary
Ahead of RBNZs monetary policy meeting that is scheduled next week, the market pricing for a November OCR cut has been stable during the past two weeks at around 80% (currently 86%). Q3 CPI data was unsurprising to RBNZ...
Oct 25, 2016 12:44 pm UTC| Central Banks Commentary
The BoJ governor Kuroda hinted at adelay of timing to reach 2% inflation beyond the end of his term in April 2018. With growth remaining above trend, the BoJ likely would maintain status quo at its November 1 policy...
FxWirePro: Speculating EUR/USD’s non-directional trend via iron condors in tepid IVs
Oct 25, 2016 11:35 am UTC| Central Banks Research & Analysis
The euro was little changed yesterday, despite the hawkish Fed rhetoric, after stronger-than-expected October PMI data and comments from ECB Governing Council member Hansson that all aspects of the QE programme needed...
FxWirePro: Short rich gamma in USD/BRL as BCB shifts into hawkish tone
Oct 25, 2016 09:47 am UTC| Central Banks Research & Analysis
Brazils long-awaited exit from recession took a step back this week, with a disappointing set of August activity data leading us to lower the growth projection for Q316 even though we still see a tepid recovery starting...