17 Aug 2015
The week ahead for G10's while China pipes down - TDS
FXStreet (Guatemala) - Analysts at TD Securities look at the week ahead, seeing China policies returning to normal and explained that on the G10 front, the week ahead is fairly quiet calendar wise.
Key Quotes:
"In the US, July CPI and Fed’s minutes from the July FOMC meeting will be the focus. We think they are likely to suggest a high chance for a September hike as labor market conditions improve. In Europe, the focus will be on the Eurozone manufacturing PMIs."
"We also expect attention on CNY and China’s new FX policies from last week to continue returning to normal. Though we saw stabilisation in the Chinese and Asian markets already last week, we wanted to make sure that today’s USD/CNY fix was in line with Friday’s before breathing a sigh of relief. It was… and we sighed... The fix came in a tad lower (6 pips) than Friday’s at 6.3969, which shows the PBoC favours more two-way trading, but strengthens the message that “China has no intention or need to participate in a ‘currency war’."
Key Quotes:
"In the US, July CPI and Fed’s minutes from the July FOMC meeting will be the focus. We think they are likely to suggest a high chance for a September hike as labor market conditions improve. In Europe, the focus will be on the Eurozone manufacturing PMIs."
"We also expect attention on CNY and China’s new FX policies from last week to continue returning to normal. Though we saw stabilisation in the Chinese and Asian markets already last week, we wanted to make sure that today’s USD/CNY fix was in line with Friday’s before breathing a sigh of relief. It was… and we sighed... The fix came in a tad lower (6 pips) than Friday’s at 6.3969, which shows the PBoC favours more two-way trading, but strengthens the message that “China has no intention or need to participate in a ‘currency war’."