日本語
Español
中文
Русский
- New York 23:39
- London 04:39
- Barcelona 05:39
- Tokyo 13:39
- Sydney 15:39
FX Commentary
This report has been deactivated
1
0
BoE, ECB and Riksbank rate cuts
Fri, Dec 5 2008, 10:28 GMT
by Kasper Kirkegaard
Global policy rates are coming down
At today's monetary policy meetings, the Bank of England (BoE) and the European Central Bank (ECB) have announced significant rate cuts: BoE by 100bp and ECB by 75bp. Also, the Swedish central bank, Riksbanken, took markets by surprise by cutting rates by an unprecedented 175bp.
Earlier this week, the Reserve Bank of Australia (RBA) lowered rates by 100bp and the Reserve Bank of New Zealand followed yesterday with a 150bp rate cut.
Below are our initial thoughts:
- Today's interest rate announcements have not made us change our general view on the G10 currencies. We expect EUR, SEK, and GBP to see sustained pressure in the short term - not least against USD, CHF, and JPY.
- Today's central bank action does, however, show a willingness from the world's central banks to address a very difficult economic outlook. This should, in combination with the numerous rescue packages, help lead a recovery in risk sentiment and eventually a recovery in SEK and GBP against EUR.
- Those currencies that are backed by a central bank that has been "behind the curve" in terms of easing monetary policy enough (e.g. SEK, EUR, NZD, and to some extent GBP) have generally weakened against currencies backed by more pre-emptive central banks (e.g. USD and AUD). We expect this pattern to continue (ceteris paribus) thereby weighing on EUR.
Published on Fri, Dec 5 2008, 10:33 GMT
Archive
- USD: February TIC data
Published On Fri, Apr 17 2009, 07:44 GMT - Stock markets and the SEK - some details
Published On Tue, Mar 17 2009, 15:27 GMT - USD: January TIC data - US investors start buying, those elsewhere stop
Published On Tue, Mar 17 2009, 10:20 GMT - An overview of G10 equity betas
Published On Wed, Mar 11 2009, 15:57 GMT - EUR/USD: Reserve balancing by Russia likely to add downside pressure on EUR/USD
Published On Thu, Feb 5 2009, 11:35 GMT
Danske Bank
| Holmens Kanal 2-12, DK-1092 Copenhagen
http://www.danskebank.com/ | danskeresearch@danskebank.com
Legal disclaimer and risk disclosure
This publication has been prepared by Danske Bank for information purposes only. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. Whilst reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. Danske Bank's research analysts are not permitted to invest in securities under coverage in their research sector. This publication is not intended for private customers in the UK or any person in the US. Danske Bank A/S is regulated by the FSA for the conduct of designated investment business in the UK and is a member of the London Stock Exchange. Copyright () Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.Related reports
Forex Technical Report - U.S. Dollar Reverses Early Session Weakness by ForexHound.com
Tue, Nov 24 2009, 00:55 GMT
Daily Market Outlook by AceTrader
Tue, Nov 24 2009, 00:23 GMT
Hungary: CB cut the base rate by 50bp to 6.50% by Erste Bank der oesterreichischen Sparkassen AG
Mon, Nov 23 2009, 14:35 GMT
Macro Monitor - Hungary by Danske Bank A/S
Mon, Nov 23 2009, 12:07 GMT
Market Session Recaps - London Session by FOREX.com
Mon, Nov 23 2009, 11:36 GMT
boe, ecb, centralbanks, riksbank
View AllRelated content
Emerging Market Central Banks Have Scope To Buy More Gold -BlueGold
Dow Jones | Tue, Nov 24 2009, 02:51 GMT
Brazil's Central Bank Buy US Dollars At BRL1.7228 At Auction
Dow Jones | Mon, Nov 23 2009, 16:08 GMT
ECB Trichet: Strong Dollar Important For World Economy
Dow Jones | Mon, Nov 23 2009, 15:43 GMT
UPDATE: ECB Trichet: Govts Must Prepare For Stimulus Exit
Dow Jones | Mon, Nov 23 2009, 15:20 GMT
UPDATE: Hungary Ctrl Bk Lowers CPI Forecasts, Sees More Cuts
Dow Jones | Mon, Nov 23 2009, 14:57 GMT
boe, ecb, centralbanks, riksbank
View AllInterested in forex trading? forex brokerage firms!
GET CASH BACK FOR YOUR TRADES! Learn more about the Pip Rebate Program
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
©2009 "FXstreet.com. The Forex Market" All Rights Reserved.