Fed Rate Hike

Should the Fed hike rates? Cues for the Global Markets ahead : Part I – Thinking like the Fed

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US-federal-reserveWith low inflation and falling inflation expectations, the Federal Reserve is believed to execute a rate hike this year. The funds rate is the mechanism the Fed uses to regulate short-term interest rates in the economy, which in turn moves across the yield curve.

The Fed has two objectives: stable prices and firm economic growth. The Central banks stimulate the economy by cutting rates when the economy is slowing down. While lower rates can bring economic growth, they mostly come with an inevitable consequence: Inflation.  Read the rest of this entry »

Discovering the newest form of alpha in the currency markets

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currency-blogUsing sentiment analysis for gauging general stock sentiment is nothing new in the financial industry. Ever increasing views and reactions of analysts, experts, fund managers and traders on blogs and social media sites, continues to drive this very interesting field of research. But how about analysing social indicators for currency pairs?

At Heckyl we achieve this by using the following parameters in addition to the standard ones explained in our earlier blog Sentiment Analysis in Finance :

  1. Marco-economic news – Tracking macro indicators, central bank announcements, official press releases, government speeches and interviews for both countries separately
  2. Macro Views by leading institutions and analysts for the two countries

Read the rest of this entry »