FX Daily

 

FX Daily; Asia
August 15, 2016 Posted by

 o        One year after RMB’s sudden devaluation on Aug 11, 2015, China largely succeeds in its objective of revamping the FX mechanism to make RMB more market oriented and relative stable to a basket of currencies.

Offshore USD/CNH range bound between 6.6250 and 6.6740 since the beginning of August. 1

China’s FX reserve dropped slightly in July, as a stable RMB has eased downward pressure on China’s reserve.2

USD/CNH will be trading in a slightly upward bias as recent weaker-than-expected economic data suggest China might be running out of policy options to stimulate its economy.

The medium to long term outlook for USD/CNH is still moving higher in an orderly fashion with a possible target of 6.75 by year end.

PBOC sought stability and will prevent the RMB depreciating too fast.

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FX Daily
August 10, 2016 Posted by

The overnight long USD liquidation has abated, although there were no real impetus for the move except that risk sentiment appears to be better. 

 
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FX Daily
August 09, 2016 Posted by

The greenback reversed course after the disappointing US productivity data and market players used the opportunity to pare longs USD positions established after Friday’s jobs report. 

 
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FX Daily
August 08, 2016 Posted by

Momentum for the USD carried over from Friday following the solid US employment report.

 
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FX Daily
August 05, 2016 Posted by

USD jobs report was quite solid with the headline non-farm payrolls coming in at +255K vs 180K expected. 

 
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FX Daily
August 04, 2016 Posted by
In an unprecedented move, the Bank of England introduced aggressive tactics in the hopes of averting a recession.
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FX Daily
August 02, 2016 Posted by

The USD is under some pressure this morning (DXY -0.6%) despite higher US bond yields (10’s +5bps 1.55%). 

 
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FX Daily
August 01, 2016 Posted by

Consolidation continues and FX volumes are below normal with holidays in Canada, Australia and Switzerland. 

 
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FX Daily
July 29, 2016 Posted by
US rates and the dollar got crushed due to the lack of action by the Bank of Japan overnight and the big miss in US Q2 GDP that scaled down expectations for tightening.
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FX Daily
July 28, 2016 Posted by
FOMC told the story that the market wanted to hear. The statement was mildly hawkish acknowledging improving labor conditions and expansion in economic activities, while staying patient to tightening.
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