Surprisingly strong unemployment data reduces the chance of RBNZ cutting rates in March

Feb 03, 2016 16:06 pm UTC| Commentary Central Banks

New Zealand unemployment rate plummeted to 5.3% in the December quarter, in stark contrast to expectations for a small increase. Employment growth was up a solid 0.9% while there was also a sharp fall in...

Emerging Market Crisis Series

Will Emerging Markets benefit from a cautious Fed?

Feb 03, 2016 15:15 pm UTC| Commentary Central Banks Economy

The Fed is likely to tighten monetary policy only by as much as markets allow without major turmoil. The FOMC statement showed that the Fed takes the financial market turmoil and the development in China and other emerging...

China Crisis Series

Renminbi Series

China’s foreign reserve data likely catalyst for next CNY move

Feb 03, 2016 15:05 pm UTC| Commentary Central Banks

Chinas foreign reserve data to be released on Chinese New Year Eve is likely to be the catalyst for the next CNY move. If there is another big drop in the reserves, the market could speculate more depreciation in Chinese...

Wheeler's comments to support NZD in the short-term

Feb 03, 2016 14:55 pm UTC| Commentary Central Banks

NZD saw handsome gains overnight, and this despite continued risk aversion! Decent Q4 labour market data which recorded a surprise fall of the unemployment rate from 6.0% to 5.3% was one of the reasons. But the main reason...

BOJ easing rate side effects – retail traders deprive of JGBs

Feb 03, 2016 12:04 pm UTC| Commentary Central Banks

Bank of Japans (BOJ) newly introduced negative rate has sparked some consequences in Japanese government bond (JGB) issuance. Ministry of Finance, Japan, announced today that due to falling yields, from February 5th, it...

Fed Hike Aftermath Series

Market now price in no hike from FED in 2016

Feb 03, 2016 10:13 am UTC| Commentary Central Banks

Market participants are now seeing no chance of a hike in 2016, especially as volatility returned in the market. Bank of Japans (BOJ) introduction of negative rates seem to have only paused the selloffs for a day and...

China Crisis Series

Can PBoC make a successful transition towards a more flexible exchange rate?

Feb 03, 2016 10:09 am UTC| Insights & Views Central Banks

PBoC has shocked the markets twice in the past six months in its effort to depreciate CNY against the USD, first in August and then Dec 2015. Both the times markets evidenced intensified CNY depreciation expectations,...