Negative Rates Series

Currency War Series

SNB’s deposit rate cut likely this week

Dec 08, 2015 09:11 am UTC| Commentary Central Banks

The modest rate cut by ECB last week raises pressure on the Swiss National Bank for a rate cut. The Swiss interest rates are below the EUR rates across the horizon, which support EUR/CHF to move above 1.10. Switzerland...

Higher Fed funds rate may raise arbitrage

Dec 08, 2015 05:12 am UTC| Commentary Central Banks

The U.S. Federal Reserve is holding more bonds; as a result, total USD reserves in the Fed funds system have increased to USD 2,500 billion, which is more than reserve requirement. The depository institutes, who have...

Oil and fiscal policy to shape future BoC actions

Dec 07, 2015 23:35 pm UTC| Commentary Central Banks

In the policy statement, BoC noted the economic adjustment in Canada is being aided by the recovery in the US, the depreciated currency and previous monetary easing. Q3 GDP seemed to confirm BoCs rhetoric, showing a...

Currency War Series

ECB with a further monetary easing bias in 2016

Dec 07, 2015 22:27 pm UTC| Commentary Central Banks

There is unlikely to be much change in euro zone economic growth in 2016. Non-performing loans on bank balance sheets, overly high corporate and private debt, falling house prices in Italy and France and the lack of...

Currency War Series

BoE to stay pat at Thursday's meet, scope for some macroprudential considerations

Dec 07, 2015 11:39 am UTC| Commentary Central Banks Technicals

The BOE has held off raising rates for a long time now. The last MPC meeting made it evident that a strong GBP was a larger concern for the BoE than previously perceived. After the ECB disappointed the market significantly...

Currency War Series

Swiss FX reserve rises with intervention

Dec 07, 2015 10:34 am UTC| Commentary Central Banks

For the past month, looking at Euro/ Franc exchange rate, we have been speculating that Swiss National Bank (SNB) might be intervening in the market on regular basis to pop up Euro against Franc and to maintain some...

Swiss FX reserve rises with intervention

Dec 07, 2015 10:27 am UTC| Commentary Central Banks

For the past month, looking at Euro/ Franc exchange rate, we have been speculating that Swiss National Bank (SNB) might be intervening in the market on regular basis to pop up Euro against Franc and to maintain some...