In addressing this question, we want to look at what surprises could happen next year that boost currencies in a way that we might not be anticipating.
Major central banks have accumulated huge amounts of assets via all the bond (and FX) purchases done over the years since the global financial crisis (GFC).
Just recently we’ve seen two instances of intervention: FX intervention by the Bank of Japan (BoJ) and Bank of England (BoE) intervention in the gilt market.
Japan has begun FX intervention, but its chances of success could be compromised by the BoJ’s target band for JGB yields.
The domestic foreign exchange market remains stable amid global volatility.
The key question is whether the SNB will continue to allow the franc to rise in its next monetary policy meeting.
A plethora of central bank meetings this week will hog the headlines and possibly dictate short-term, if not longer-term currency movements.
Until not too long ago, all kinds of inflation seemed to be considered as bad. But then came the period of lowflation and, for some, almost permanent deflation. The...
Currency volatility is very low. It seems that the FX market is looking for new catalysts from central banks.
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...
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...
The dollar has strengthened following the Fed’s slightly more hawkish take on monetary policy last week. But according to Standard Bank, it is not expected to set off a...
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