Further room for Gilts to rally and spreads to widen

Aug 06, 2015 07:34 am UTC| Commentary

BOE buybacks is seen as a bullish force for Gilts, forecasting 10y rates to rally further in Q3 before selling off into year end. Also, Gilts is expected to continue to outperform swaps."Being long the Sep-24 bond both...

Singapore economy likely to post 2.2% growth in 2016

Aug 06, 2015 07:21 am UTC| Commentary

Singapores labor force is slowing significantly, with net employment contracting (-6,100) in 1Q for the first time since the global financial crisis. There is a high risk that weak employment will persist, given tight...

USD/JPY range to shift higher

Aug 06, 2015 07:12 am UTC| Commentary

In light of the acceleration of the US economy and rise in short-term yields, the possible downward revision of the BoJs bullish price outlook down the road, and the BoJs asymmetrical stance on policy responses, a...

China composite PMI lower despite of outperforming services industry

Aug 06, 2015 07:09 am UTC| Commentary

The Caixin China PMI composite index, an indicator focusing on the privately-owned companies, dropped by 0.4pt to 50.2 in July, the lowest in more than one year. The decline was largely dragged down by weak manufacturing...

US data put USD on a roller-coaster ride

Aug 06, 2015 07:06 am UTC| Commentary

The USD was on a roller-coaster ride yesterday. The markets hypersensitive response to the US data was certainly caused by the statements of Atlanta Fed President Dennis Lockhart and Fed Governor Jerome Powell, who said...

Several EM currencies expected to remain weak

Aug 06, 2015 07:05 am UTC| Commentary

USD-ZAR moving towards 13, USD-TRY almost back at 2.80 - USD-BRL obviously had to keep pace and only just missed the 3.50 mark yesterday. Emerging markets curren-cies were unable to keep up with the USD yesterday. And it...

Japan politics once again back in focus

Aug 06, 2015 07:04 am UTC| Commentary

The markets may pay more attention to Japanese politics over the short term should the support rate fall further as the bills in question are debated in the Upper House through September. This could give rise to the risks...