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FX Daily; Asia
May 02, 2016 Posted by

Overview

  • Given the overall weakness in USD, PBOC set the onshore CNY fixing rate at 6.4589 against the USD last Friday, up 365 basis points from Thursday.1 It was the biggest upward move since 2005. 
  • USD dropped to its lowest level in 18 months against the JPY after the Bank of Japan’s decision to refrain from further easing disappointed markets.2
  • China’s Manufacturing Purchasing Manager index (PMI) at 50.1 in April, Vs estimate of 50.3 and 50.2 in March.3
  • The State Administration of Foreign Exchange (SAFE) said on Friday that it will allow banks to issue more FX-related FX products for hedging purpose, and hold bigger short-USD positions at the end of day. 
  • USD/CNH exchange rate has been range-bound.
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FX Outlook
May 18, 2012 Posted by
The People's Bank of China (PBOC) announced the long-expected widening of the USD/CNY daily trading band to +/- 1percent from +/- 0.5 percent effective on April 16.  This move is a significant step towards a more freely traded RMB.Though history indicates that USD/CNY would probably not trade at the new maximum trading band, widening the trading band will allow the USD/CNY exchange rates to be determined more by market forces creating rate fluctuations.
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FX Outlook
September 12, 2011 Posted by
The Swiss National Bank has said it would set a minimum exchange rate of 1.20 Swiss francs per euro and committed to sell unlimited amounts of Swiss francs to control how much the franc can gain. This measure is a last-resort response to contain the recent strong appreciation of the Swiss franc due to a huge influx of safe-haven-seeking capital into the currency ...
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FX Outlook; Asia
June 14, 2011 Posted by
A year ago this month, the RMB cross border trade settlement scheme was expanded to 20 Mainland Chinese provinces and cities. Mainland Designated Enterprise (MDE) exporters in these provinces were allowed to settle trade transactions in RMB with any part of the world, while Chinese importers had no restrictions in paying RMB to overseas vendor.
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FX Outlook
May 03, 2011 Posted by
The outcome of last week's long-awaited FOMC event confirmed the Fed's continued bias toward an accommodative policy. The verbiage of the Fed statement was little changed and quite close to the market expectations that had developed in the weeks leading to the meeting.
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FX Outlook
March 22, 2011 Posted by
The yen's surge in the wake of the earthquake and tsunami may have seemed counter-intuitive at first glance, but it reflected, in part, market speculation that Japanese firms and the Japanese government will repatriate money now invested overseas in order to pay insurance claims and the cost of rebuilding.
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FX Outlook; Asia
February 01, 2011 Posted by
China's effort to create an offshore international market for its currency in Hong Kong has generated huge excitement. Since China liberalized trade settlement and investment rules last July, large amount of CNH (CNY that are freely traded in Hong Kong) has accumulated in Hong Kong's banking system.
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FX Outlook
December 08, 2010 Posted by
Last week started with the euro (EUR) plunging to 2½-month lows against the USD amid concern that the Irish bailout was not big enough and contagion fears to other euro zone members. The single currency reversed course to rally in the latter part of the week as the European Central Bank (ECB) announced it would continue to provide liquidity to the system into Q1 2011.
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