Tag: Currencies

Dollar repatriation? Different story told by cross currency swap

Intro Cross-currency basis swaps, also known as basis swaps, are contracts in which two counterparties agree to exchange interest payments according to two floating rates as well as notional principals denoted in two different currencies. Theoretically, covered interest rate parity should hold in absence of arbitrage opportunities. Here S and F denote the spot and […]

A Primer on FX Carry Trading

Carry Trades and the Interest Parity Condition The uncovered interest rate parity (UIP) condition states that, under risk neutrality, the gain from borrowing a low interest rate currency and investing in a higher interest rate one will, in equilibrium, be matched by an equally large expected loss by a depreciation of the high interest rate […]

BSIC Guide to 2016 Financial Markets

2016 is highly likely to be the year when a generation of traders and analysts will play in an environment characterised by rising interest rates (especially, in the US) for the first time in their career. On the other side, however, expansive monetary policies will still be present in most of the remaining macroeconomic areas […]

Market Recap and Brief 29-11-2015

[edmc id= 3290]Download here the Weekly Market Brief[/edmc] United States A flurry of US data came out this week. Consumer sentiment came in at 91.3 in November, below an initial reading of 93.1. New home sales rose to 10.7%, taken as positive despite coming in below consensus. Consumer spending increased 0.1% in October, below expectations of […]

Market Recap and Brief 22-11-2015

[edmc id= 3279]Download here the Weekly Market Brief[/edmc] United States Once again, the discussion around the expected Fed policy decisions in December has dominated the week in the US markets. The minutes of the Fed October meeting, released on Wednesday, hardened expectations of an interest rate hike. They also hinted at a cautious approach after that, […]

Market Recap & Weekly Brief14-11-2015

[edmc id= 3197]Download here the Weekly Market Brief[/edmc] United States The one just ended has been a pretty volatile week for the US market, with investors continuing to show some concern about the possibility of a rate hike in December in an environment of still uneven economic growth. Deteriorating growth outlooks in Asia and Europe, and […]

Market Recap and Weekly Brief 07-11-2015

[edmc id= 3174]Download here the Weekly Market Brief[/edmc] United States US economy has seen many macroeconomic data being released this week, in particular regarding the labour market, while the FED governor had a speech that has strongly affected the markets on Wednesday. The labour market has been the main actor of the week: the ISM manufacturing […]

Market Recap 31-10-2015

[edmc id= 3109]Download here the Weekly Market Brief[/edmc] United States This week has been very intensive due to the large amount of macroeconomic data that have stricken the US economy. On the labour market side, the situation continues to improve. In fact, the initial jobless claim beat expectations, 260K requests against a prediction of 263K, as […]

Market Recap 17-10-2015

[edmc id= 3009]Download here the Weekly Market Brief[/edmc] United States October still seems to be a very positive month for US equities. Some analysts pointed it out as the month for a possible rate hike, but it ended up being positive so far, even if uncertainties about the long-awaited rate hike still hold. The S&P500 is […]

Market Recap 10-10-2015

[edmc id= 2948]BSIC Weekly Market Brief[/edmc] United States The new positive data regarding the labour market and the speech of the FOMC regarding the recent decision of the FED not to hike interest rates have impacted US markets in the past week. For what concerns the labour side, the Initial Jobless Claims was highly relevant. […]

Market Recap 03-10-2015

BSIC Weekly Market Brief United States The major benchmarks were mixed as worries over China’s waning commodity demand and the potential for new rules on drug pricing gave way to a late-week rally. Stocks fell sharply at the start of the week, reaching back toward the lows that they had established at the end of […]

Market Recap 26-09-2015

BSIC Weekly Market Brief United States Last week decision by the FED to keep the cost of money unchanged was still affecting the stock market, pushing the S&P500 down during the first part of this week. On the other hand, the yield on the 10-year Treasury Notes has floated quite a bit, closing the negotiations […]

The Opec meeting: days of market turm-Oil

Several investors have kept an eye open on oil this week putting all their hopes in the long-awaited OPEC meeting held on Thursday. Opening this week at $80.50 per barrel, the decisions of the OPEC meeting provoked an intraday drop of 6.65 percentage points in Brent crude prices on Thursday, with the oil price reaching […]

BSIC Markets Division Macro View: 16|11|13

  Two main issues dominated the week, the Yellen speech in front of the senate and the BoE inflation report. Ms. Yellen’s tone was strongly dovish and we understand why. The US economy is not ready for a December tapering. Inflation is declining from 2% in July to 1.2% now and the participation rate is […]

Trade Idea: Short AUD/JPY

Trade Idea: Short AUD/JPY   It is well known that the BoJ is pursuing a really aggressive expansionary monetary policy that clearly is pushing down the Yen compared to other currencies. However, we see a possible reverse in the short term trend of the pair AUD/JPY. From a technical point view we saw that the […]

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