Talking Points:British Pound slumps as UK PM May revives “hard Brexit” fears Australian Dollar follows local shares higher amid risk-on trade Cautious Fed-speak may cool rate hike bets, weigh on US Dollar
The British Pound is underperforming in otherwise quiet trade at the start of the trading week, roiled by comments from UK Prime Minister Theresa May over the weekend. May rekindled worries about a “hard” Brexit – wherein the UK would lose access to the EU single market – in an interview with Sky TV. She said her priority is to negotiate the best possible UK/EU trade deal while remaining firmly outside the regional bloc rather than find ways [...]
Talking Points:Crude oil prices rise, correcting after yesterday’s selloff Gold prices gain as FOMC minutes dent rate hike outlook ISM and ADP may see gold rise further as EIA boosts oil
Crude oil prices turned higher in a move that seemed corrective after yesterday’s sharp selloff. API data showing inventories fell 7.43 million barrels last week probably didn’t hurt either, but much of the day’s advance had already occurred by the time the release crossed the wires.
Gold prices pushed upward as expected following the release of minutes from December’s FOMC meeting. Policymakers seemed far less convinced of the need for [...]
Talking Points:US Dollar corrects broadly lower as liquidity rebuilds after holidays Aussie Dollar outperforms on upbeat China PMI, NZ Dollar follows Euro may look past German inflation uptick, US ISM survey in focus
The US Dollar corrected lower overnight having traded broadly higher against its major counterparts in yesterday. The Australian and New Zealand Dollars proved best-supported, which may reflect the two currencies’ allure as the highest yielders in the G10 FX space. This makes them natural alternatives to the greenback when an adverse shift in the Fed rate hike outlook undermines the US unit.
The Aussie [...]
This daily digest focuses on Yuan rates, major Chinese economic data, market sentiment, new developments in China’s foreign exchange policies, changes in financial market regulations, as well as market news typically available only in Chinese-language sources.
– U.S. Dollar, Euro, Yen, and Pound’s weights in CFETS Yuan Index have been reduced.
– China’s liquidity mechanism shows a clogging issue: non-bank institutions unable to borrow from banks.
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– China [...]