FX Hedging Strategy Series

FxWirePro: PBoC intervenes to depreciate CNY, Forward market speculators shrug-off – Hedge Chinese currency risks via offshore FX option

Jul 06, 2016 12:25 pm UTC| Insights & Views Central Banks

USDCNY fixing rates continue to spike higher, which has triggered speculation that further CNY depreciation is looming on the horizon. While it seems that the Chinese central bank (PBoC) continues to weaken its currency...

Riksbank keeps repo rate and QE program unchanged; revises inflation's and GDP's forecasts down

Jul 06, 2016 09:57 am UTC| Commentary Central Banks

The Swedish central bank, Riksbank, kept its repo rate on hold at -0.5 percent during its meeting on Wednesday, as widely expected by the market. Also, it kept its QE program unchanged. The Executive Board has assessed...

Fed’s Williams signals rate hike in 2016, dismisses further Brexit risk

Jul 06, 2016 09:08 am UTC| Commentary Economy Central Banks

The Federal Reserve Bank of San Francisco President John Williams, during a telephonic interview, signaled a rate hike this year, dismissing any further risks that might emanatefrom Britains likely exit from the European...

BoE trims banks’ capital requirements as Brexit risk weighs deeper

Jul 06, 2016 07:52 am UTC| Central Banks Economy Commentary Insights & Views

The Bank of England has trimmed the capital requirements of commercial banks in its bi-annual Financial Stability report (FSR) published on Tuesday, in an attempt to waive off mounting Brexitrisks, post the June 23 UK...

RBA leaves rates unchanged, August meeting still ‘live’

Jul 05, 2016 13:36 pm UTC| Commentary Central Banks

After omitting an explicit easing bias in the June post-meeting statement, the RBA on Tuesday left the cash rate unchanged at 1.75 percent and introduced a soft easing bias in its statement that followed. The...

National Bank of Poland likely to discuss new policy tools, rates to stay stable

Jul 05, 2016 12:30 pm UTC| Commentary Central Banks

The National Bank of Polands Monetary Policy Council is likely to keep the key interest rate on hold at 1.5 percent during its meeting on Wednesday, noted Societe Generale in a research report. Furthermore, the central...

Despite recovery in oil price Moody’s warns on Saudi banks

Jul 05, 2016 08:01 am UTC| Commentary Central Banks Economy

The oil price has recovered more than 90 percent from their bottom in February but one of the top three rating agencies Moodys has warned of the liquidity pressure in Saudi Arabias banks. The squeeze is likely to take its...