FxWirePro: A Bird’s Eye-View On RBA QE Program And AUD Risk-Reversals - Hedging & Trading Setup

May 15, 2020 11:14 am UTC| Research & Analysis Central Banks Insights & Views

Markets would be observing the effectiveness of the RBAs QE program and yield target. A fair level for 3yr swap rates would be around 0.40%, but pandemic-related volatility will result in a wide range, say 0.25%-0.50%. The...

FxWirePro: Spotlight On Banxico MPS – Upholds USD/MXN Call Ratio Spreads

May 14, 2020 14:08 pm UTC| Research & Analysis Central Banks Insights & Views

Tonight the Mexican central bank (Banxico) is likely to cut its key interest rate by another 50 bps. Inflation fell to 2.2% in April, below the central banks inflation target. With regard to the economy, which has slid...

Norwegian Macros Provides Breathing Space To Norges - Delta Loop Vanilla Triangle Package For NOK

May 13, 2020 14:47 pm UTC| Research & Analysis Central Banks Insights & Views

Inflation was not much of an issue in Norway anyway over the past few years, so that Norges Bank was able to hike its key rate quite strongly over the past two years until it lowered it back to 0% again as a result of the...

FxWirePro: Kiwis Affirms Bearish Potential, Bid 3m NZD Skews & Deploy Suitable Hedging Strategies On RBNZ Hints Of Negative Rates

May 13, 2020 08:58 am UTC| Research & Analysis Central Banks Insights & Views

Overnight, theRBNZleft rates at 0.25%, but increased its QE programme, also indicating that negative rates will become an option in the future. We recommended short NZD in our portfolio vs a basket of AUD and USD as...

The Reserve Bank thinks the recovery will look V-shaped. There are reasons to doubt it

May 09, 2020 06:37 am UTC| Economy Central Banks

The Reserve Banks long-awaited two-year forecasts for jobs, wages and growth are frightening, but I fear they are not frightening enough. The bank looks two years ahead every three months. The last set of forecasts,...

A Run Thorough On Norges Bank’s Surprising Cuts - Correlation Of Norwegian Krone Conducive For Asymmetric Shorts

May 08, 2020 11:18 am UTC| Research & Analysis Central Banks

Norges Bank surprised general expectations yesterday and lowered interest rates by 25bp to now zero. At the same time it made it clear that this was the end of the line and that negative interest rates were not on the...

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RBA Maintains Status Quo In Expansionary Mode Of Monetary Policy - Relative Values in Aussies Via Optionality

May 05, 2020 12:08 pm UTC| Research & Analysis Central Banks

The Reserve Bank of Australia (RBA) left its monetary policy unchanged this morning, but changed the rules for some collateral to assist with financing conditions on the capital markets. In its main scenario the RBA...