RMB: What’s up with the fix? – ANZ

Khoon Goh, Senior FX Strategist at ANZ, suggests that it appears that there has been yet another change to the way the USD/CNY fixing is managed.

Key Quotes

“Greater emphasis is being placed on the RMB basket movements as opposed to the fixing rate against the USD.

If this continues, it suggests there will be much larger two-way volatility in the USD/CNY fixings going forward. This should help manage exchange rate expectations by deterring the market from taking one-sided positions.

We continue to expect modest RMB depreciation over the course of this year, and maintain our year-end USD/CNY forecast of 6.70.”

Feb 19, 2016

BOJ’s exit from QE may be more difficult than Fed’s – Nomura

Richard Koo, Chief Economist at Nomura, suggests that the Fed is paying close attention to its communications to ensure its policies do not come as a surprise to market participants.

US January CPI: Disinflationary impulse to persist - TDS

Research Team at TDS, suggests that the disinflationary forces dampening US consumer prices should continue to linger in January, as weaker energy and food prices push the headline CPI down a further 0.1% m/m (down 0.128% m/m at 3 decimal places), marking the second monthly decline in this indicator.