Focus Turning to Trade Talks after BoE, SNB and BoJ
Swiss Franc and Yen are trading as the strongest for today so far. Both like lifted by somewhat dovish yet balanced central bank decisions. There are no clear indication of imminent policy easing from SNB nor BoJ yet. On other...
How to Apply the Bollinger Bandwidth Strategy
The Bollinger Bandwidth indicator can provide invaluable signals for technical traders, and when combined with other technical indicators and price action techniques, gives traders insight into both volatility and potential reversals in the forex market. Before reading further, be sure...
Focus Shifts from Fed Back to Trade, Oil Rises as Gold Steadies
US stocks are poised for a softer open as markets continue to digest the Fed’s lack of commitment to further rate cuts and as the global economy seems set to hit the worst levels since the financial crisis. The OECD...
SNB Raises Exemption Threshold for Negative Rate; CHF Rises on No Rate Cut
SNB left the policy rate unchanged at -0.75%. It reiterated the commitment to “intervene in the foreign exchange market as necessary, while taking the overall currency situation into consideration”. Additionally, the central bank adjusted the interest charged on banks’ excess...
Crude Oil Falls As Saudi Makes A Promise
Oil prices reacted sharply at the start of the week to news of drone attacks wiping out some of the oil production. However, the price of WTI crude oil has been steadily declining since Monday. Saudi Arabia announced that it...
Here’s why regulators are so worried about Facebook’s digital currency
A visual representation of a cryptocurrency coin on display in front of the logos for Facebook and Libra. Chesnot | Getty Images Policymakers around the world have upped the pressure on libra, the digital currency being introduced by Facebook, amid...
Dollar Lacks Follow Through Buying after Fed’s Hawkish Cut
The stock markets are mixed after the hawkish rate cut by Fed overnight but treasury yields are back under pressure. Dollar rose mildly after the announcement but there was no follow through buying. Yen surges broadly today, riding on falling...
KfW: Germany’s source of cheap capital
Germany’s third-largest bank, KfW, is a development bank unlike any other – designed originally by the UK and US military governments specifically to complement a fragmentation of German banking they enforced. Its remit now ranges from student loans to financing Germany’s renewable...
Asia Morning: The Fed Refuses To Connect The Dots
The Federal Reserve FOMC cut the Fed Funds rate 25 basis points overnight to 1.75-2.00% as expected, but wandered off the market’s script though as the committee members “dot plots” on rate expectations, indicated no need for further cuts before...
FOMC Cut Rate by -25 bps. Third Cut Still Possible Despite Sounding Less Dovish
Fed lowered the policy rate by -25 bps to 1.75-2.00%, although market expectations of a rate cut diminished markedly ahead of the meeting. The decision was not unanimous. Yet, it revealed a more divided Fed. The updated median dot plot...