Fed Hike aftermath Series: Hike probabilities over coming meetings

Jul 29, 2019 04:15 am UTC| Commentary Central Banks

FOMC followed through its promise and hiked rates four times in 2018 and forecasted two more rate hikes for 2019. Current Federal funds rate - 225-250 bps (Note, all calculations are based on data as of 29th...

Bank of Russia lowers key interest rate by 25 bps to 7.25 pct

Jul 26, 2019 14:19 pm UTC| Commentary Central Banks

The Bank of Russia cut the key interest rate by 25 basis points to 7.25 percent today. In its statement, the central bank noted that the deceleration in inflation is continuing. Meanwhile, inflation expectations continue...

FxWirePro: Surprised CBT Cuts Cushion Turkish Lira – Uphold USD/TRY ‘Debit Call Spread’ to Hedge

Jul 26, 2019 13:27 pm UTC| Research & Analysis Central Banks

It is slightly difficult to understand the market reaction to the Turkish central banks (CBT) rate cut by a staggering 425bp yesterday: initially, the lira eased a little and then it appreciated only to then close on...

FxWirePro: BRL FX-Hedging Costs Eye on BCB Cuts

Jul 26, 2019 12:08 pm UTC| Research & Analysis Central Banks

The usual impression is that the exhaustive situation one can find when you look at the latest development of the BRL. For some time USDBRL remained below the psychological level of 4.00, despite the political chaos of the...

FxWirePro: ECB Monetary Policy Assessment - Bearish/Bullish Scenarios of EURUSD, OTC Updates and Options Strategies

Jul 26, 2019 09:10 am UTC| Research & Analysis Central Banks

ECB has continued to maintain status quo in its yesterdays monetary policy. The European central bank is no longer as passive about the economy and lack of progress on inflation as it was before Draghis activist Sintra...

FxWirePro: Three stimulants that drive euro amid struggling eurozone and bearish trading setup

Jul 26, 2019 07:59 am UTC| Research & Analysis Central Banks

There are predominantly three factors we would cite as having helped EUR cope with the regions limp economy thus far: 1) The currency is structurally undervalued, meaning there is already a decent risk premium for the...

Central Bank of Turkey cuts key interest rate to 19.75 pct

Jul 25, 2019 19:39 pm UTC| Commentary Central Banks

The Central Bank of Turkey cut its one-week repo rate to 19.75 percent from 24 percent, as was widely anticipated. Todays rate cut of 425 basis points was dovish on the surface, as was also indicated by the Turkish lira...