Insights

 

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; 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
July 13, 2016 Posted by
Risk sentiment remains buoyant, but the accelerator has eased off a bit as equities and high yielders pared gains.
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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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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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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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