ECB’s Nowotny unveils probable tapering path
Jul 27, 2017 09:51 am UTC| Commentary Central Banks
Austrian central bank governor, a prominent member of the European Central Banks (ECB) governing council, Ewald Nowotny signaled how the central bank might approach a reversal in its easy monetary policy under which the...

FxWirePro: Fundamental drivers and valuations of USD/JPY
Jul 27, 2017 08:26 am UTC| Central Banks Research & Analysis Insights & Views
The US Fed left policy unchanged yesterday evening, as expected, but the accompanying statement did express more concern about the recent softness in prices. The FOMC statement seems to have been the trigger rather than...

Fundamental Evaluation Series: Long-term yield spread vs. EUR/GBP
Jul 26, 2017 11:54 am UTC| Commentary Economy Central Banks
This chart shows the performance of EUR/GBP exchange rate in contrast to the performance of long-term yield divergence between 10-year German Bund and 10-year UK gilt. During our evaluation period beginning August...
Jul 26, 2017 11:33 am UTC| Central Banks Research & Analysis Insights & Views
Brazilian central bank is lined up to announce its monetary policy today, following its last rate meeting in late May the Brazilian central bank had signaled that future rate hikes might happen in smaller steps. This more...

Fundamental Evaluation Series: USDJPY vs. yield divergence
Jul 26, 2017 11:07 am UTC| Commentary Economy Central Banks
This one pair has been at odds with yield divergence throughout early 2016 as the yen benefited from risk aversion and due to market participants doubts on BoJs abilities to ease policies further. It had shown...

Fundamental Evaluation Series: GBP/USD vs. short-term yield divergence review
Jul 26, 2017 11:01 am UTC| Commentary Economy Central Banks
The chart above shows, how the relationship between GBP/USD and 2-year yield divergence has unfolded since 2012. The cozy relationship between the yield spread and the exchange rate, in this case, is quite visible. Back...

Fundamental Evaluation Series: USD/CHF vs. yield divergence
Jul 26, 2017 10:58 am UTC| Commentary Economy 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...