September hike still expected from US Fed

Sep 10, 2015 05:05 am UTC| Commentary

DXY swung around in August, ending the month little changed but with a 6% high to low range. In short-term, it all comes down to the timing of the first hike even if the much more important question is the path of policy...

Experts suggest BCB to unwind its swaps contracts

Sep 10, 2015 04:59 am UTC| Commentary

The central bank of Brazil holds a meaningful amount of FX swaps; unwinding them would exert further pressure on a weak BRL. The BCB has about USD102bn of swap contracts outstanding, and reducing them is particularly...

Currency and political uncertainty on top of BCB's price action

Sep 10, 2015 04:45 am UTC| Commentary

The improvement in the Brazils external sector, reflected by the reduction in the current account deficit and low risks of a balance of payment crisis, does not prevent from expecting further currency weakness. The higher...

A February hike still likely from BoE

Sep 10, 2015 04:33 am UTC| Commentary Central Banks

August has on the face of it been unkind to the call for a February BoE rate hike. The BoE could give a more dovish feel to Thursdays BoE policy meeting minutes. There is no need for the BoE to sound hawkish right now....

Premier Li’s comments on Chinese economy

Sep 10, 2015 04:29 am UTC| Commentary Economy

China Premier Li Keqiang told a conference on Thursday that growth in China is stabilizing and that the worlds second-biggest economy is still on track to achieve growth targets this year. While admitting that China was...

BoE unlikely to go with market pricing on rates

Sep 10, 2015 04:29 am UTC| Commentary

The Bank of England (BoE) will need to acknowledge global events and data that justify a more dovish tone. But the BoE is not expected to row back expectations to where the rate strip currently sits. Expressions of concern...

Mexico GDP growth in 2016 likely to be at 2.4%

Sep 10, 2015 04:23 am UTC| Commentary

Mexicos federal government deficit is reduced to 2.7% of GDP from 3.1% in 2015. The federal government is planning to reach a deficit of MXN520bn in 2016, less than the deficit of MXN573bn planned for 2015 (3.1% of GDP)....