FX & Interest Rates

FX & Interest Rates

How fast will we return to ‘normal’ interest rate levels over the next couple of years? What type of monetary policy will be pursued by the major central banks and when will interest rates start rising? We will closely monitor events in our two-weekly reports and offer you the most likely scenarios for interest rates in the US and Eurozone.

The interest rate markets still offer excellent opportunities to hedge your organisation against rising interest rates in the future. Please contact us if you are considering hedging your risks. Our consultants make the bank’s pricing transparent and assist you in concluding interest rate derivatives. This ensures you will not overpay interest.

EUR/USD - GBP - CHF - JPY - CNY

Central banks are countering the inflationary mindset

Eddy Markus
Monday, 23 May 2022
Eddy Markus

The Bank of England will step on the brakes a little harder than the ECB, because the UK labor market - mainly due to Brexit - is much tighter and therefore the risk of a wage-price spiral is greater. As a result, EUR/GBP could eventually fall towards 0.80 after moving sideways for a while. With respect to the dollar, the depreciation of the euro has not yet come to an end…

 

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Previous Issues

EUR/USD & GBP hedging perspective
Tuesday, 17 May 2022

FX Poll

Monthly FX Poll

Timo Venema
Thursday, 5 May 2022
Timo Venema

Forecasts for EURUSD have decreased, looking back from the poll last month. On the short term (2022) and medium term (2023) the median forecast has dropped on average by 2 cents. On the long term (2024 and further) the median is still around the same levels as the prior month. The exception here is the 1 cent drop in 2026 (from 1.21 to 1.20).

 

In Asia, the situation is different for EURJPY. In the short term (2022) there is an increase in the median forecast. In the medium term (2023) we also see an increase in the median. In the long term (2024 and 2025) there is an increase in the median, but the number is flattening.

 

Back in Europe the median forecast for EURGBP shows something different. In the short (2022 and 2023) and medium (2024) term there are slight differences, but the median is relatively stable. In the long term (2025) the median forecast increased from 0.84 to 0.87.

 

In Switzerland, the short term (2022 and beginning 2023) shows a little decrease. The medium term shows an increase and there is a long new term (2025) forecast of 1.11.

 

Our Monthly FX Poll consists of more than just these four major currency pairs, so please find in our Monthly FX Poll an overview of the predictions of approximately 50 leading banks and brokers for the most common traded currency pairs (including the date for each party).

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Previous Issues

Monthly FX Poll
Friday, 1 April 2022
Monthly FX Poll
Monday, 7 March 2022

EMU & US Interest Rates

Recession prevention is more important than the fight against inflation

Ron Markus
Monday, 16 May 2022
Ron Markus

The markets are discounting that at the end of the year the Fed and the  ECB have tightened monetary policy to such an extent that the economy will slow down significantly. There are a number of reasons why the markets are now anticipating too much rate hikes. Therefore, we expect a temporary decline in long-term interest rates in the coming months.
 

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Swap Rates & More

Daily Market Snapshot

Damian Honders
Wednesday, 25 May 2022
Damian Honders

A convenient overview (Excel sheet) of the FX rates, swap rates, Money Market deposits, Futures, Euribor and Libor fixings, Stock market indices, etc. 

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Previous Issues

Daily Market Snapshot
Tuesday, 24 May 2022
Daily Market Snapshot
Monday, 23 May 2022