ECB takes centre stage this week as markets anticipate further monetary easing

Oct 18, 2015 23:21 pm UTC| Commentary Central Banks

The ECB will take centre stage this week as markets anticipate further monetary easing in the months ahead. More monetary easing is expected before year-end. It is believed that the details and magnitude matter for the...

NJA: Weak China data expected; potential ECB easing could lift USD/Asia again

Oct 18, 2015 22:12 pm UTC| Commentary Central Banks

The USD/Asia retracement has extended this week, with soft US data further pushing back market expectations of Fed rate hike. Moreover, a less aggressive easing by the MAS (relative to market expectations) and an unchanged...

Likely renewed pressure on AUD as rate cut discussion intensifies and Chinese data shows disappoints

Oct 18, 2015 21:35 pm UTC| Commentary Central Banks

The RBA board minutes (Tuesday) are more important than usual should they contain any discussion of bank funding costs. The risk of a cut has increased because one large domestic bank recently announced that it is...

Another quiet week before the BoJ

Oct 18, 2015 20:36 pm UTC| Commentary Central Banks

This week will likely be another quiet one before the much-awaited 30 October BoJ meeting next week. Hence, USDJPY will likely be driven by overseas development, including the ECB and China data, as well as fluctuations in...

ECB to prepare the way for additional stimulus by year-end

Oct 18, 2015 20:24 pm UTC| Commentary Central Banks

An increasingly cautious Fed, coupled with an uncertain EM outlook, has benefited the EUR recently, contributing to tighter euro area financial conditions. Coupled with the recent drop in inflation expectations, such...

BOE policymaker Forbes optimistic on emerging markets

Oct 16, 2015 13:52 pm UTC| Insights & Views Central Banks

There is at least one central bank policymaker optimistic on emerging markets. Risk from emerging markets and pessimism over them has been at the heart of central bank communication naturally a fresh air of optimism is a...

Vanishing FED hike headache for ECB, BOJ

Oct 16, 2015 13:29 pm UTC| Insights & Views Central Banks

Delay in FED hike and sharp drop in expectations, which now is forecasting first rate hike close to middle of next year is creating headache for European Central Bank (ECB) and Bank of Japan (BOJ) policymakers. Latest...