FED and BoE are too woke?
Not for the first time, central bankers in advanced countries such as the US and UK have been accused of being too woke.
Not for the first time, central bankers in advanced countries such as the US and UK have been accused of being too woke.
As we inch slowly but surely towards Fed tapering and later, rate hikes, the significance of the Fed as the key determinant of the global financial cycle will be clear...
Central banks have issued new policies are suited to fighting the “new” war, which is against inflation, not deflation.
The UK interest rate markets have moved dramatically in recent weeks with futures markets now pricing in the very real possibility of a small (15-bps) rate hike by the...
At the moment, there are many views of inflation, in which FED said that it is a little less transitory. How will central banks tighten monetary policy?
Global oil price could continue its uptrend thanks to the sluggish supply and global demand recovery. However, FED's rates hike and US-Iran nuclear talks could be...
Biden administration’s tax hike plan, coupled with the Fed’s own relaxed inflation target, could weigh on the greenback as well.
It does matter whether it is a demand or supply shock that is creating the inflationary pressure.
Many experts said the VND would continue to strengthen against USD by end-2021. However, this trend could be reversed next year.
Currency volatility is very low. It seems that the FX market is looking for new catalysts from central banks.
As we get closer to the next FOMC meeting on Wednesday, the markets obsession is with the starting point. When will the Fed start to taper its bond purchases and then,...
Policymakers, and most analysts believe that the surge we have seen in inflation will be temporary. That’s likely to be correct although much depends on what we mean by...
The risk of policy mistakes from government and central banks is high because of Covid-19. This is not just because nobody has lived through a global pandemic before; it...
The most significant example of ongoing intervention in FX has been from the Swiss National Bank (SNB) as it tries to stop the franc from rising too rapidly against the...
ECB tightening has the same global spillovers as Fed tightening. There are three points that we should note in this regard.
FED has started considering its tightening cycle, in which it could taper its bond purchases before rates hike. Will USD fluctuate ahead of this cycle?
It seems pretty well accepted that asset purchases by central banks do have effects on exchange rates and, very often, they are similar effects to changes in interest...
The possible near-term FX market stability will include the outlook for Fed policy and whether tensions in Afghanistan create a wider risk-off sentiment in the...
This week sees another inflation test in the US in the shape of the July CPI data. The monthly CPI is forecasted to increase by an average of 0.2% per month since the...
The dollar usually rises when risk aversion soars. Numerous emerging market crises, the global financial crisis and, most recently, the pandemic have all proved this...
Economic growth is surging in the developed nations, inflation is rising sharply, some central banks have already started to pare back their monetary stimulus,...
Central banks are forecasting that the overshoot in inflation will prove temporary. Private sector economists are saying the same thing and so too are the financial...