Central Banking Series

FxWirePro: Is PBoC effort prudent to keep capital outflows on check? Buzzing IRS and cash bonds (CGBs)

Feb 28, 2017 09:35 am UTC| Central Banks Insights & Views

We expect depreciation pressures on the Renminbi would return over the medium-term. Although the slower capital outflows may persist in the very near-term, the downside risk in the medium-term comes from the private...

Central Banking Series

ECB likely to stretch QE beyond March 2017, says Commerzbank

Feb 28, 2017 08:33 am UTC| Commentary Economy Central Banks

The European Central Bank is expected to extend its quantitative easing programme beyond March 2017 at its last monetary policy meeting this year, scheduled on December 8. Also, the Italian constitutional referendum, to be...

FxWirePro: Does BoE equate Brexit politics? Stop paying in 10Y GBP versus USD swaps

Feb 28, 2017 07:21 am UTC| Central Banks Insights & Views

GBP has been choppy but trendless this year on a messy interplay between Brexit politics and BoE expectations. Hopes that deterioration in the growth-inflation trade-off might prompt a rate hike as early as the end of this...

FxWirePro: “Pulling forward to Fed call”, divergence between S&P and UST 10Y - What’s buzzing in US treasury? Why is annuity hedge in unwinding phase?

Feb 28, 2017 07:13 am UTC| Central Banks Insights & Views

Treasury yields have remained stuck in the same range they have held since early December, even as equities have continued to rise and are now up 5% YTD (refer above diagram). In the recent times, UST yields initially rose...

FxWirePro: The Day Ahead- 28th February 2017

Feb 28, 2017 04:31 am UTC| Commentary Economy Central Banks

Lots of economic dockets and events scheduled for today and some with high volatility risks associated. Data released so far: Australia: Current account balance improves to -$3.9 billion in the fourth quarter....

FX Hedging Strategy Series

FxWirePro: Polish inflation boosts zloty’s uptrend, prolongs to hit 3-month highs – Prefer call spreads over naked calls

Feb 27, 2017 12:33 pm UTC| Central Banks Insights & Views

The zloty has benefitted over the past month as regional inflation data have surprised to the upside: the market is aware that the Polish MPC is well balanced, with a fair proportion of hawks warning already that the...

Central Banking Series

Strong data from the euro area suggest ECB could start taper in early 2018

Feb 27, 2017 12:14 pm UTC| Insights & Views Central Banks Economy

The ECB has maintained an ultra-loose monetary policy with an aim to stimulate economic growth in the euro area and push inflation towards the central banks target of just below 2.0 percent. Recent data from the euro area...