monetary policy

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Central banks current monetary policy - Where to next?

Major central banks around the world, except for the BOJ, are in tightening mode on the back of increasing inflation.

Fixed vs floating exchange rates – what’s the difference?

A fixed exchange rate describes when a currency’s value is pegged to a stronger, more influential currency. By contrast, a floating exchange rate allows a currency value to fluctuate with supply and demand. Both systems have pros and cons depending on a country’s economy.

February 15, 2022 03:24 PM

Forecasting 2022 inflation: Transitory no more?

The ongoing global inflationary pressure stems from two primary causes: Economic stimulus and supply chain disruptions - how will they evolve in 2022?

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Three key questions every trader should be asking about inflation…and how to trade it

Both the current supply chain disruptions and the highly-accommodative economic policies are poised to ease, though perhaps not until closer to the middle of 2022...

ECB recap: Lagarde drives EUR/USD to new October highs

Ms. Lagarde's strongest statement was around the PEPP purchases ending in March, making the statement more hawkish than anticipated

ECB Preview: Lagarde to be dovish as she drives home strategic review

“The formulation removes any possible ambiguity and resolutely conveys that 2% is not a ceiling”

July 20, 2021 01:29 PM

What is a repo? Repurchasing agreements explained

The repo market has gathered significant attention recently after the Fed’s purchases hit a record of half a trillion dollars. But is a repo? And why does central bank action impact the market so much? Find out below.

FOMC Preview: More wait and see

Expectations are for the FOMC to continue to sing their same tune.

April 23, 2021 12:41 PM

USD/JPY: BOJ unlikely to ruffle any feathers after last month’s whooping

It’s a busy time of the month for central bankers, and the BOJ will be the first major central bank to draw traders’ attention this […]

USD/CAD edging lower as BOC takes a sanguine view on Loonie

As expected, the first major central bank “decision” of the week was not much of a decision at all. Earlier this morning, the Bank of […]

EUR/GBP at a 1-year high – bulls may eye .8000 next

Earlier today, we talked about the recent strength of the euro in the context of EUR/USD, but the moves in EUR/GBP since the start of […]

Dudley’s Dovish Declaration Develops into a Deluge of Dollar Disposal

It’s been a disastrous day for the world’s reserve currency: the US Dollar Index is trading down by over 1.5% to a new 3-month low […]

ECB President Draghi pops EUR bulls’ balloons

Any time markets are volatile, traders look to perceived “leaders” to tell them everything is going to be alright (see the popularity of CNBC’s recent […]

EUR/USD: The range to watch heading into 2016

Over the last week or so, we’ve reset the longer-term outlooks for a number of major currency pairs and markets, but now we wanted to […]

AUD/NZD: Home, home on the range

We’re seeing mixed performance in the foreign exchange market today, with the greenback rallying against most of its rivals (prominently including pound sterling and all […]

EUR/USD: Widening Fed/ECB policy divergence could expose 1.10 next

Markets are generally quiet in data-less trading so far today, but that is likely to change with the changing of the season tomorrow. Tonight’s Caixin […]

FOMC Instant Reaction: “Nearly” There, but “Further” Improvement Needed

Analysts and traders were unanimous in their expectation that the central bank would leave interest rates unchanged in the 0.00-0.25% range, and the Fed provided […]

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