China's impact on local currencies likely to come from growth

Sep 08, 2015 06:41 am UTC| Commentary

The impact that China will have on local currencies is more likely to come from Chinas economic growth rather than from its currency. For those currencies that are particularly closely tied into global value chains that...

French business sentiment set to improve

Sep 08, 2015 06:19 am UTC| Commentary

The Banque de France will publish its second estimate for Q3 GDP growth. The GDP growth rate is likely to be unchanged at 0.3% qoq, estimates Societe Generale. The Banque de France carried out a monthly survey of business...

Russian inflation to fall to 11.6% by end 2015

Sep 08, 2015 05:33 am UTC| Commentary

Pass-through is diminished by weak Russian economic performance. A 10% NEER depreciation normally adds 0.5-1.0pp to headline inflation. However, the current effect might be less for two reasons. First, the ruble rout of...

Effect of CNY appreciation on other Asian currencies not obvious

Sep 08, 2015 05:27 am UTC| Commentary

A significant contribution to the effective exchange rate appreciation of CNY came from the relative weakness of other Asian currencies, especially the Japanese yen, but also the Korean won, Taiwan dollar etc. In fact,...

CBR to keep key rate unchanged

Sep 08, 2015 05:27 am UTC| Commentary

Back in July, uncertainty was expected to come from the probable Fed policy tightening and require the CBR to put its easing cycle on hold for a while. Conditions at that point were defined by tension from volatility in...

Minutes to provide BCB’s take on BRL and its implications for inflation

Sep 08, 2015 05:17 am UTC| Commentary

The BCB kept the Selic target unchanged at 14.25% at its September Copom meeting. The decision was not surprising in light of the hint given at the July Copom meeting. Although the BCB would like to maintain the Selic...

U.S. non-manufacturing activity likely quickened

Sep 08, 2015 05:16 am UTC| Commentary

Wider reports of hiring and wage gains in U.S., combined with rosier demand expectations during the next six months, propelled our Richmond Fed service -producing composite 1.75 points higher to 26.5 - the strongest...