Forex

Schroders believes today’s moves by the PBoC do not signal the start of a substantial devaluation in the yuan as financial and social stability remain the overriding concerns for policymakers. The decision by the People’s Bank of China (PBoC) to alter the way in which it fixes the yuan – now… Read More »

The People’s Bank of China (PBoC) has announced that it is improving the pricing mechanism of the daily fixing rate of the renminbi It will do this by referencing the previous day’s closing rate and by taking into account “demand and supply conditions in the foreign exchange markets” as well… Read More »

Eurozone countries contain the leading tourist destinations worldwide and should benefit from the euro’s depreciation. This effect could, on our rough estimates, add 0.2 points to the Eurozone’s GDP August is approaching. Well-deserved holidays await the writers of this note and their regular readers. Before shutting up shop, a rapid… Read More »

Japan’s corporate re-leveraging since 2012 appears to be on a sustained footing Having accelerating to 2% of GDP, the rise in corporate borrowing is a marked reversal from companies’ relentless focus on paying down debt in the years prior.The increased borrowing needs of companies is an emerging force in Japan’s… Read More »

The USD has turned around, completing its downward correction within a secular bull trend ECB keeps transmission channels open. Risk appetite remains the key variable for judging the EUR. The EUR’s funding status suggests repatriation related inflows will occur when investors reduce risk exposure, while rallying equity markets would push… Read More »

The parabolic rally in the US dollar that kicked off last summer has been arguably the most important trend for investors over the past year. In currency markets, there seems to be a nearly insatiable demand for US dollars In currency markets, there seems to be a nearly insatiable demand… Read More »

The long USD trade requires a pickup in US data. Until this happens, USD is vulnerable to further downward correction USD Requires a Stronger US. It’s a simple point, but an important one. With deflationary risks subsiding outside the US and less aggressive easing globally, a USD revival needs a… Read More »

Chinese equities have rallied over 110% in the past year, driven by a combination of policy easing and financial market liberalisation Chinese equities have rallied over 110% in the past year, driven by a combination of policy easing and financial market liberalisation. We believe the latter will be enduring and… Read More »