
Jul 28, 2016 12:52 pm UTC| Research & Analysis Insights & Views Central Banks
Please have a glance IVs of Yen crosses (see highlighted portion of yen crosses), 1W ATM tenors have spiked above 22% almost all yen crosses, and this turbulence in OTC market is majorly due to tomorrows monetary policy...
BoJ shouldn’t act like hostage to financial markets
Jul 28, 2016 12:09 pm UTC| Commentary Central Banks
The Bank of England (BoE), European Central Bank (ECB), Reserve Bank of Australia (RBA), and the U.S. Federal Reserve all has stayed away from taking any action over the UK referendum, there is apparently no reason that...
Russian central bank likely to remain on hold due to inflationary pressures
Jul 28, 2016 11:07 am UTC| Commentary Central Banks
The Central Bank of Russia (CBR) is largely expected to remain on hold at its monetary policy meeting scheduled to be held on July 29, following higher-than-targeted inflationary pressures that would restrict the bank from...

Fundamental Evaluation Series: USD/CHF vs. yield divergence review
Jul 28, 2016 11:07 am UTC| Commentary Central Banks Economy
In recent days, Swiss francs correlation with the 2-year yield spread (US-Swiss 2 year) has dropped to 25 percent but time on time again it shows relatively high positive correlation, as high as 80 percent at times. Just...

Fundamental Evaluation Series: USD/JPY vs. yield divergence review
Jul 28, 2016 09:02 am UTC| Commentary Central Banks
This one pair has been at odds with yield divergence lately after acting as an excellent responder to it from 2012 (starting period of the analysis) to summer of 2015. It kept responding to yield divergence despite a drop...

Fundamental Evaluation Series: GBP/USD vs. yield divergence review
Jul 28, 2016 08:38 am UTC| Commentary Central Banks Economy
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...

Jul 28, 2016 08:06 am UTC| Research & Analysis Insights & Views Central Banks
The implied volatilities of ATM contracts for near month expiries of this the pair are spiking in sky-rocketed pace. Here are the evidences: ATM IVs of this pair is trending higher at around 53.61%, 17.99% and 24.47%...