FX Hedging Strategy Series

FxWirePro: ECB’s infinite stimulus but finite losses on hedging Euro rates through ATMFs

May 10, 2016 12:59 pm UTC| Commentary Central Banks

We see room for cutting the deposit rate to -0.75%, but there is no technical limit for an instance. With Draghi signalling that we are close to the limits on the deposit rate, however, further cuts are not likely in...

FX Hedging Strategy Series

FxWirePro: ECB’s negative rates and further APP dampen Euro’s growth, OTC indications to substantiate – hedge EURO in Brexit scenario

May 10, 2016 11:47 am UTC| Commentary Central Banks

Euro gained against dollar about 8.24% in last 5 and half months despite ECBs monetary policy pressures, but central banks pressures have hampered euros growth pace but confronting to address geopolitical issues. We see...

BoE’s Carney signals rate cut on Brexit prospects

May 10, 2016 06:16 am UTC| Central Banks

Governor Mark Carney of the Bank of England has warned the nations commercial banks and other financial institutions of a possible rate cut on prospects of Britains exit from the European Union. He had earlier reiterated...

FxWirePro: Leverage benefits in “GBP/AUD speculative strategy CCS” amid BoE vs RBA policy divergence

May 09, 2016 12:13 pm UTC| Insights & Views Central Banks

The RBA surprised by cutting in May, which suggests another cut to 1.5%, probably in August. We expect the BoEs bank rate is likely to be unchanged in this weeks monetary policy, as is the split of the vote. We think...

FX Hedging Strategy Series

FxWirePro: Driving forces of BoE’s status quo in May and hedging sterling

May 09, 2016 11:00 am UTC| Commentary Central Banks

Firm sentiment deteriorated in UK noticeably in April and is likely to worsen further as the EU referendum draws nearer, supporting our expectation of zero growth in Q2 16. UK PMIs for all sectors have deteriorated...

Renminbi Series

China’s FX reserves rise moderately in April, USD/CNY forecast to reach 6.7 by 2016-end

May 09, 2016 06:33 am UTC| Commentary Central Banks

China released its FX reserves data for April, along with the foreign trade data. The overall scenario is that the Chinese economy continues to face headwinds, albeit less stronger than in the earlier months, noted Nordea...

BOJ March meeting minutes: Economy continuing to recover gradually

May 09, 2016 00:03 am UTC| Central Banks

The BOJ publish a Summary of Opinions after each meeting, the one for March is here:BOJ Summary of Opinions (March meeting) - risk balance still...