24 Jun 2013
Flash: German economy not operating at powerhouse strength – Investec
FXstreet.com (New York) - According to Lee McDarby, Corporate Treasury at Investec, “In an encouraging move for UK importers the Bank of England and its Chinese counterpart have signed a deal likely to boost trade between the UK and China in the Yuan.”
The two central banks have signed a three-year currency swap worth £21bn as the UK looks to position itself as a center for the Yuan. Mervyn King said ‘In the unlikely event that a generalized shortage of offshore renminbi emerges the Bank will have the capability to facilitate renminbi liquidity to UK institutions’.
The timing issues concerning the Federal Reserve’s tapering of QE remains the dominant force in the markets for the time being and as a result the US data releases will receive extra attention as the week progresses. “Over recent months the German economy hasn’t quite been performing as the powerhouse it once was, although overall a small improvement in sentiment was seen from today’s release and provided a better indication of the likely outcome of Germanys growth in Q2.” McDarby adds.
The two central banks have signed a three-year currency swap worth £21bn as the UK looks to position itself as a center for the Yuan. Mervyn King said ‘In the unlikely event that a generalized shortage of offshore renminbi emerges the Bank will have the capability to facilitate renminbi liquidity to UK institutions’.
The timing issues concerning the Federal Reserve’s tapering of QE remains the dominant force in the markets for the time being and as a result the US data releases will receive extra attention as the week progresses. “Over recent months the German economy hasn’t quite been performing as the powerhouse it once was, although overall a small improvement in sentiment was seen from today’s release and provided a better indication of the likely outcome of Germanys growth in Q2.” McDarby adds.