FxWirePro: A run through of USD/JPY debit put spread ahead of US trade policy, review of Fed and BoJ’s monetary policies

Aug 20, 2018 07:58 am UTC| Research & Analysis Insights & Views Central Banks

On Wednesday, the new trade negotiations will begin between the US and China and the annual economic conference in Jackson Hole organised by the Kansas Fed will also begin on this Thursday. Both events mark the two factors...

Fed Hike aftermath Series: Hike probabilities over coming meetings

Aug 20, 2018 04:22 am UTC| Commentary Central Banks

FOMC increased interest rates in March and June and increased its forecast from three rate hikes in 2018 to four rate hikes. June decision was unanimous. Current Federal funds rate - 175-200 bps (Note, all calculations are...

Fundamental Evaluation Series: 2-year yield spread vs. GBP/USD

Aug 17, 2018 09:16 am UTC| Commentary Central Banks

The chart above shows, how the relationship between GBP/USD and 2-year yield divergence has unfolded since 2012. Brief history (2012-2016) The cozy relationship between the yield spread and the exchange rate, in this...

Bank Negara Malaysia likely to remain accommodative, maintain OPR at 3.25 pct through this year: ANZ Research

Aug 17, 2018 08:50 am UTC| Commentary Central Banks Economy

Bank Negara Malaysia (BNM) is expected to remain accommodative and growth supportive, with the Overnight Policy Rate (OPR) likely to be maintained at 3.25 percent throughout this year, according to the latest report from...

Fundamental Evaluation Series: USD/CHF vs. 2-year yield divergence

Aug 17, 2018 08:49 am UTC| Commentary Central Banks

During our evaluation period beginning 2012, the yield spread between the US 2-year bond and a Swiss equivalent has widened by almost 200 basis points but the exchange rate hasnt followed through as much as it should have...

Fundamental Evaluation Series: USDJPY vs. 2-year yield spread

Aug 17, 2018 08:33 am UTC| Commentary Central Banks

The above chart shows the relation between the 2-year bond spread (U.S. - Japan) and USD/JPY exchange rate. Brief background (2012-2016): This one pair has been at odds with yield divergence throughout early 2016 as...

Norges Bank keeps rates on hold, likely to hike rate in September

Aug 16, 2018 13:11 pm UTC| Commentary Central Banks

The Norwegian central bank met today and kept the interest rates on hold, as anticipated. The Norges Bank also affirmed the signals from the monetary policy report in June. The monetary policy meeting today was an interim...