
Fundamental Evaluation Series: USDJPY vs. yield divergence
Jul 26, 2017 11:07 am UTC| Commentary Economy Central Banks
This one pair has been at odds with yield divergence throughout early 2016 as the yen benefited from risk aversion and due to market participants doubts on BoJs abilities to ease policies further. It had shown...

Fundamental Evaluation Series: GBP/USD vs. short-term yield divergence review
Jul 26, 2017 11:01 am UTC| Commentary Economy Central Banks
The chart above shows, how the relationship between GBP/USD and 2-year yield divergence has unfolded since 2012. The cozy relationship between the yield spread and the exchange rate, in this case, is quite visible. Back...

Fundamental Evaluation Series: USD/CHF vs. yield divergence
Jul 26, 2017 10:58 am UTC| Commentary Economy Central Banks
During our evaluation period beginning 2012, the yield spread between the US 2-year bond and a Swiss equivalent has widened by almost 200 basis points but the exchange rate hasnt followed through as much as it should have...
UK gilts climb after Q2 GDP fails to bolster markets
Jul 26, 2017 10:02 am UTC| Commentary Economy
The UK gilts climbed Wednesday after investors moved into safe-haven assets, following the release of the countrys gross domestic product (GDP) for the second quarter of this year, which failed to push markets...
Eurozone periphery bonds jump in silent trading ahead of benchmark German CPI
Jul 26, 2017 09:38 am UTC| Commentary Economy
The Eurozone periphery bonds jumped Wednesday in a silent trading session that witnessed data of little economic significance. Also, the German and Eurozone consumer price inflation indices, scheduled for release on July...
South Korea Q2 GDP likely to fall to 1.5 pct q/q owing to inventory destocking, says DBS Bank
Jul 26, 2017 08:41 am UTC| Commentary Economy
The second quarter GDP (preliminary) is due this Thursday. Growth is expected to fall to 1.5 percent q/q (saar) after rising a strong 4.3 percent at the beginning quarter of this year. In the y/y terms, growth is also...

Fundamental Evaluation Series: Short-term yield spread vs. EUR/USD
Jul 26, 2017 08:34 am UTC| Commentary Economy Central Banks
The chart above shows, how the relationship between EUR/USD and 2-year yield divergence has unfolded since 2012. It is evident that these short rates have been a key influencing factor for the pair as policy divergence...