Fed Hike Aftermath Series

Fed Hike Aftermath Series: Markets sure of hike this week

Jun 12, 2017 06:24 am UTC| Commentary Central Banks

Financial market participants are almost sure that a rate hike is coming from the US Federal Reserve this week, despite the recent weakness in some of the key economic dockets. For example, in the month of May, the US...

FxWirePro: Fed to hike but how many in 2017 - Buy 3Mx10Y 1x2 payer spreads

Jun 09, 2017 13:41 pm UTC| Central Banks Insights & Views

Markets have mostly converged on a June hike, but the medium-term path remains discounted relative to our and the Feds expectations. We recommend adding conditional exposure to mean reversion via 3Mx10Y 1x2 payer...

FxWirePro: Outright trades for resilient EMFX basket ahead of yet another FED hike

Jun 09, 2017 09:30 am UTC| Central Banks Insights & Views

The US dollar firmed slightly and US bond yields are slightly higher. Markets werent too rattled by either Comeys testimony or the ECB decision. After the recent volatility, the CNH market should calm down while the...

FxWirePro: The Day Ahead- 9th June 2017

Jun 09, 2017 04:44 am UTC| Commentary Central Banks

Lots of economic data and events scheduled for today and some with high volatility risks associated. Data released so far: China: Consumer price inflation declined by 0.1 percent in May, up 1.5 percent from a year...

ECB keeps policy rates and QE program unchanged, future steps likely to be very gradual

Jun 08, 2017 22:09 pm UTC| Commentary Central Banks

As anticipated, the European Central Bank Governing Council changed its communication during its meeting earlier today. It removed the possibility for lower rates and saw risks to economic outlook as balanced and not...

FxWirePro: Who wins among RIKSBANK, RBNZ or GDT index to stimulate NZD/SEK optionality trades?

Jun 08, 2017 12:49 pm UTC| Research & Analysis Insights & Views Central Banks

The RBNZ has signaled the next cycle a tightening one will not start until the end of 2019. That will anchor the short end, although markets will not abandon their expectations for tightening as early as mid-2018 which...

FxWirePro: A glimpse through European interest rate derivative on ECB’s status quo monetary policy

Jun 08, 2017 12:26 pm UTC| Central Banks Insights & Views

ECB today has maintained status quo in its monetary policy, keeping minimum bid rate unchanged at 0.00% which was widely expected. In upcoming ECB press conference, with no policy change, market players are focusing on how...