China’s FX reserves likely dropped to $3.5trn

Oct 05, 2015 21:19 pm UTC| Commentary Central Banks

Chinas FX reserves likely dropped by $57bn in September to $3.50trn, compared with a $94bn decline in August. Since there was little change in major currency valuations vs the USD, the estimated decline implies $55bn of FX...

Can weak US data provide sustained support to EM and commodity currencies like during the QE era?

Oct 05, 2015 17:45 pm UTC| Commentary Central Banks

Stocks and EM FX rallied after the worse-than-expected NFP. The market seems to be taking comfort in the likelihood that the slowdown of the US labor market could keep the Fed on hold for even longer. The fact is that...

RBA to stand pat in Oct policy meet, weakness expected in exchange rate

Oct 05, 2015 11:19 am UTC| Insights & Views Central Banks

Australias current cash rate stands at a record low of just 2 percent after the RBA slashed rates by 25 basis points, or 0.25 per cent, in both February and May this year. Market and most analysts believe interest rates...

Policy on hold, but the RBA may tweak its views on the global economy

Oct 04, 2015 21:03 pm UTC| Commentary Central Banks

The RBA (Tuesday) is expected to keep the cash rate unchanged at a record low of 2% given that the Governor recently said he was pretty content with current policy. However, the accompanying press release may be tweaked to...

Further BoJ easing expected in October

Oct 04, 2015 20:52 pm UTC| Commentary Central Banks

Deteriorating growth and weakening inflation outlook in Japan increased the pressure for the BoJ to act early. With regards to specific easing measures, the BoJ is expected to 1) increase the annual pace of monetary base...

BoE on hold but may want to tailor expectations somewhat

Oct 04, 2015 20:34 pm UTC| Commentary Central Banks

The BoE is expected to keep the Bank Rate and asset purchase decision unchanged at its October meeting (Thursday) in line with market expectations. Nonetheless, it is believed that the tone of the MPC from the release of...

ECB minutes in search of strong signals regarding further stimulus

Oct 04, 2015 20:24 pm UTC| Commentary Central Banks

Amid a relatively light data calendar in Europe, the release of the ECBs September policy meeting minutes will attract market interest. The focus will be on potential options discussed by the GC to ease policy further....