Renminbi Series

FxWirePro: What else is appending impetus to USD/CNY appreciation than PBoC mechanism? Is it rate differentials and/or Trump factor?

Nov 29, 2016 12:47 pm UTC| Central Banks Commentary

After the mini-devaluation in August 2015, the PBoC begam to allow the renminbi to move quicker in the direction of market forces, but it has been able to control the speed of convergence by FX interventions and capital...

FX Hedging Strategy Series

FxWirePro: PBoC FX mechanism imminent but why no counterbalancing mismatch in nominal GDP – Costless seagull structure for RMB further depreciation

Nov 29, 2016 12:37 pm UTC| Central Banks Research & Analysis

Exactly ayear ago, USDCNY was trading at 6.3180 (Nov2015) thats when (November/January 2015) the pair saw a sharp fall by the Yuan, but since April, the tactic has shifted to a slower move that has ruffled remarkably few...

MXN to remain under pressure, another 50bp rate hike from Banxico likely in December

Nov 29, 2016 11:05 am UTC| Insights & Views Economy Central Banks

As large MXN sell-off following the U.S. Presidential Elections fueled inflation fears, Banxico raised its overnight rate by 50bps to 5.25 percent in line with market expectations at its November 18th policy meeting. In...

FX Hedging Strategy Series

FxWirePro: Bullion bets on deep out-of-the-money puts, 1m IVs and risk reversals to substantiate bearish sentiments on eve of Christmas rate hiking hopes

Nov 29, 2016 08:50 am UTC| Research & Analysis Central Banks

Please be noted that the priceof precious yellow metal has always been US rates sensitive commodity. And Fed is most likely to hike in this December meeting. The gold price is down over 14% from the recent highs of...

FxWirePro: The Day Ahead- 29th November, 2016

Nov 29, 2016 05:11 am UTC| Commentary Economy Central Banks

Lots of economic dockets and events scheduled for today and all with low to medium volatility risks associated. Upcoming: Germany: Import price index for October will be released at 7:00 GMT. HICP inflation...

FxWirePro: Equity hedge fund flow boosts dollar strength, Have you missed Trump-trades? Never omit Fed cycle

Nov 28, 2016 13:11 pm UTC| Central Banks Research & Analysis

The US dollar index which measures the greenbacks strength against a trade-weighted basket of six major currencies was up about 0.08% at 101.56, while the FxWirePro Dollar Spot Index strengthened at 47 levels to signal...

Central Banking Series

BoE and ECB likely on different policy paths, upside risks to GBP/EUR ahead, says Lloyds Bank

Nov 28, 2016 12:38 pm UTC| Commentary Central Banks

Central banks in Europe might be on different policy paths. According to a Lloyds Bank research report, the Bank of England does not look likely to loosen monetary policy, whereas the European Central Bank is expected to...