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Central Banks
Hawkish & Dovish Explained!
By Deepta Bolaky @DeeptaGOMarkets Hawkish and Dovish are two crucial words widely used in our industry whenever there are central bank speeches or talks about monetary policies. But what does it mean? Central banks are more transparent than ever and forex analysts or traders try to dissect the overall tone and language used when central banker...
Read MoreThe Less-Dovish Central Bank
By Deepta Bolaky The Reserve Bank of New Zealand (RBNZ) made its first interest rate decision and monetary policy, but it was not what the market participants expected. The Central Bank did not follow the same dovish theme seen by other central banks. The Official Cash Rate (OCR) was left at 1.75%, as widely expected, and the RBNZ expects to keep ...
Read MoreReserve Bank of New Zealand – First 2019 Policy Statement!
By Deepta Bolaky The Reserve Bank of New Zealand (RBNZ) will make its first interest rate decision for the year 2019. We will see the Press Conference, Rate and Monetary Policy Statement on Wednesday. Market participants are expecting the RBNZ to adopt the same dovishness seen lately by major central banks The Reserve Bank of Australia The F...
Read MoreBank of England Synopsis
Thursday the 7th of February saw Bank of England Governor, Mark Carney, stepped back up to the mark to take on a barrage of Brexit related economic questions after giving a speech about the BoE’s stance on their current assessment of the negotiations. Economy The speech started not looking so good for the UK economy, with the Governor stating t...
Read MorePreview: The European Central Bank Rate Decision
On Thursday, the European Central Bank will announce its first policy decision of the year on whether to increase, decrease or maintain the interest rates. The decision is scheduled to be announced at 12:45 PM UK time. Why Is The Announcement Important? The European Central Bank is the central bank for the Eurozone, the countries which have adopt...
Read MoreMain Macro Themes In 2019
By Deepta Bolaky @DeeptaGOMarkets After a stellar year in 2017, investors were taken aback by the massive swings in the markets in 2018. The turmoil in the financial markets has created an environment of panic and fears about a global recession. Even though the risk of a recession is not on the horizon yet, we do expect 2019 to remain volatile...
Read MorePreview: The European Central Bank Rate Decision
With the Brexit negations dominating the news flow over the last few weeks, you may forget there are other events taking place. On Thursday, the European Central Bank will announce its decision whether to increase, decrease or maintain the interest rates. The decision is scheduled to be announced at 12:45 PM UK time. Why Is The Announcement Impo...
Read MoreECB Speeches
By Deepta Bolaky @DeeptaGOMarkets The week kicked off with a series of ECB speeches, and markets participants were gearing up to have more updates on the Eurozone economy, interest rate and Italy. Investors were keen to see whether the ECB downplays the slowdown in the German economy and the Italian Budget risks. We bring you a summary of th...
Read MoreWhat to expect from the RBA this Tuesday?
By Deepta Bolaky @DeeptaGOMarkets Australian’s weak inflation report this week has set the tone for the RBA’s Rate Statement next Tuesday. The underlying inflation reading remains well below the RBA’s target 2-3% for the 11th consecutive quarter. There is no doubt that the Australian inflationary outlook remains feeble. Some cyclica...
Read MorePreview: Bank of England Rate Decision
On Monday, UK Chancellor Phillip Hammond announced its latest budget, which did not have a massive impact on Pound Sterling. Now that is out of the way; it’s time to focus on another critical economic event – the Bank of England rate decision. The decision is set to be announced at 12:00 PM London time on Thursday. About Interest Rates Inter...
Read MoreWhat to expect from the European Central Bank this Thursday?
By Deepta Bolaky @DeeptaGOMarkets The European Central Bank (ECB) is set to announce its interest rate policy this Thursday. Market participants are widely expecting the rate to remain on hold, but most importantly, the “language” and the “tone” of the statement will be closely watched. It is unlikely that there will be any surprises ...
Read MoreUp Next: The Bank of Canada Rate Decision
One of the must-watch economic events this week will be the Bank of Canada interest rate decision. The decision is scheduled to be announced on Wednesday at 14:00 PM London time. It will be the first meeting since the new United States–Mexico–Canada Agreement (USMCA). The bank has increased its interest rates four times since July of last year,...
Read MoreA Fourth RRR cut by the PBOC
By Deepta Bolaky @DeeptaGOMarkets As PBOC slashed its Reserve Requirement Ratio (RRR) for large institutions and smaller banks, investors are trying to understand the rationale and implications of this action because it is the fourth cut for the year. The cut will inject billions of Yuan into the banking system. In doing so, it signals that Ch...
Read MoreFOMC Brief – Sep 2018 Rate Hike
Yesterday, the US Federal Reserve announced the raising of interest rates from to 2.00%~2.25%. Most Fed officials agreed (12 people out of 16) in principle to raise the rate, in line with market expectations, and according to the Dot Plot, the expected interest rate in 2019 & 2020 is 3.2% and 3.6% respectively, which is still...
Read MoreFundamental and Technical Forecasts Ahead of the FOMC meeting
By Deepta Bolaky The FOMC Meeting is set to be the highlight of the week as it might revive the rising trend of the US dollar. Watchful eyes are glued to the reactions of the financial markets as the new tariffs officially take effect today. The policy divergence between the Fed and other central banks have put the US dollar in the spotlight a...
Read MoreBank of England Rate Decision – Preview
All the talk about whether Mark Carney will leave the Bank of England in 2019 or not has ended, the current Bank of England governor has extended his stay at the central bank until January 2020 as Chancellor Philip Hammond announced it on Tuesday. So it is now time to focus on the upcoming Bank of England rate decision at on Thursday. Who Decide...
Read MoreRBA’s Next Move: Up, Down or On Hold?
By Deepta Bolaky After a Liberal leadership crisis hit the Australian dollar last week, the victory of former Treasurer, Scott Morrison brought some relief to the markets given that he was the most market-friendly option. This week the Australian banks are in the limelight. The banking sector recently made headlines over the Royal Commission...
Read MoreCentral Bank Interest Rates
Central Bank Interest Rates By Klavs Valters A central bank's interest rate is a rate at which it typically lends money to local banks. This interest rate is charged by nations’ central or federal banks on loan advances to control the money supply in the economy and the banking sector. Each central bank has its own annual schedule when announc...
Read MoreFederal Budget 2018: A Mixed Reaction
Federal Budget 2018: A Mixed Reaction By Deepta Bolaky Treasurer Scott Morrison handed down his third incorporating tax cuts, superannuation benefits, aged care spending and significant infrastructure spending. The highlight is its plan to hand out $140 billion in tax cuts over the next 7 years possibly making the budget a strong “pre-election...
Read MoreWorld’s Largest Banks
World's Largest Banks By Klavs Valters Banks play a significant role in our day-to-day lives and as the global economy continues to expand year-on-year, they will continue to do so. Even though the United States has the largest economy by Gross Domestic Product (GDP), China dominates the list of the biggest banks in the world (by asset value), w...
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