FX Daily

 

FX Daily; Asia
July 12, 2016 Posted by

The RMB hit a 5-year low of 6.7050 against the USD after unexpectedly stellar U.S. Non-Farm Payroll (NFP) jobs data was released last Friday.1 It was a continuation of the RMB’s downtrend after the recent Brexit vote — in spite of the recovery we saw in global FX and equities markets.2

 

 

Near-term, we might see the USD/CNH move higher to the low 6.70s. So, companies that need to convert RMB to USD may want to consider taking advantage of any USD retracement.  And companies looking to lock in FX rates for RMB purchase could execute their buys in increments to take advantage of a possibly higher rate.

 

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. The People’s Bank of China (PBOC) allowed the RMB to depreciate after the Brexit vote, but they seek stability and will prevent the RMB from depreciating too fast during the rest of this year.

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FX Daily
July 12, 2016 Posted by

The risk rally continues with the UK political scene gaining more clarity as Theresa May is set to become the 76th Prime Minister and Japan’s Abe have asked his economic minister to craft a stimulus package by the end of July. 

 
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FX Daily
July 11, 2016 Posted by
Sentiment is on the upswing after PM Abe won the upper house election paving the way for aggressive bold measures to support Japan’s economy as he promised in June.  
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FX Daily
July 07, 2016 Posted by
Market sentiment is more positive today with global equities, crude oil (+1.3%, $48) and bond yields (US 10yr 1.42%) in recovery mode.
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FX Daily
July 06, 2016 Posted by
Dark clouds continue to hover above us with the suspended trading of several UK property funds setting a negative tone (latest - Henderson suspended their GBP 3.9B UK fund).
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FX Daily
July 05, 2016 Posted by

Risk Aversion continues with concerns of a domino effect in the UK property market as Standard Life, Aviva and just now M&G suspended trading of their UK property funds due to accelerated redemption from clients.  

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FX Daily
July 01, 2016 Posted by
We start H2 on a calmer note in light of the US July 4th and Canada National holiday.
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FX Daily; Asia
July 01, 2016 Posted by
Surprise Brexit outcome caused global currencies tumbled, but RMB’s loss paled in comparison to global currencies. Stock markets and FX liquidity recovered two days after the Brexit vote. Near term, we might see USD/CNH to retreat further to the low 6.60’s, which would be good opportunities for companies to lock in FX rates for USD purchase. 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
June 24, 2016 Posted by
UK's decision to leave the EU sent financial markets reeling and the uncertainties ahead is affecting investment decisions and monetary policies globally.
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FX Daily
June 23, 2016 Posted by
The UK referendum date is finally here! Markets have been whippy and liquidity will continue to diminish through the day.
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