Asia, Europe, FX Outlook, Global Edge, Treasury Management

 

FX Daily; Asia
July 13, 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; FX Outlook; Asia
July 13, 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; 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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Observation Deck; Treasury Management; U.S.
July 08, 2016 Posted by
SVB Asset Management's monthly Observation Deck newsletter covers current topics on portfolio management, credit considerations and market events that influence investment strategy. In the main article for the July edition, "Brexit–The Vote Heard Around the World”, Eric Souza discusses market reactions following the June EU referendum and how decisions overseas may impact your corporate cash.
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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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Observation Deck; Treasury Management; U.S.
June 09, 2016 Posted by
SVB Asset Management's monthly Observation Deck newsletter covers current topics on portfolio management, credit considerations and market events that influence investment strategy. In the main article for the June edition, "Money Fund Reform: Keep Calm and Carry On," Paula Solanes discusses the ramifications of the upcoming reforms on corporate cash.

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FX Outlook; Startups; Technology; Venture Capital; Asia; Europe; U.S.
June 08, 2016 Posted by
The strong U.S. economic data, coupled with hawkish comments from Fed officials, led to increased odds of a rate hike, giving the dollar its best month of 2016 in May.
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FX Outlook; U.S.
May 17, 2016 Posted by
SVB has developed modular content geared toward educating you about how to negotiate the FX space as well as giving you strategies on how best to safeguard your company from an unfavorable move with a focus on Life Science.
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FX Outlook; Startups; Technology; Venture Capital; Asia; Europe; U.S.
May 12, 2016 Posted by
Two opposing forces were at play in currency markets during April: a weaker U.S. dollar countered by a stronger Japanese yen. Interestingly, both currencies were highly influenced by the inaction of their central banks.
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Observation Deck; Treasury Management; U.S.
May 09, 2016 Posted by
SVB Asset Management's monthly Observation Deck newsletter covers current topics on portfolio management, credit considerations and market events that influence investment strategy. In the main article for the May edition, "A Look at Negative Interest Rate Policy," Paula Solanes discusses what the Fed and other central banks are considering in regards to the impact of negative interest rate policy.
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