Thursday, September 28, 2017

Societe Generale says

Societe Generale says at times when the U.S. dollar was falling this year, it is likely that the Chinese authorities were buying U.S. treasuries while buying EUR/USD at the same time to rebalance reserves. "That allowed USD/CNY to fall without the value of the yuan overall going up." SocGen therefore recommends buying EUR/USD, as well as emerging market currencies, if USD/CNY starts falling again. USD/CNY reached a one-month high of 6.6759 on Thursday. But since the beginning of the year, USD/CNY was on a downward path, falling to 6.44 in early September 8 from around 6.96 on Jan. 3

Friday, September 22, 2017

GBP/USD is down 0.5% at 1.3513.

GBP/USD is down 0.5% at 1.3513. Sterling is falling versus the U.S. below 1.35 to as low as 1.3489 because British Prime Minister Theresa May isn't giving much detail on how she sees the relationship between the U.K. and the EU after Brexit. Speaking in Florence, she did say that she doesn't see a deal similar to the one Canada has with the EU, or one similar to an European Economic Area membership. Mrs. May says she would want the U.K. to form its own type of deal with the EU. "Let us be creative," she says. This level of unpredictability is negative for the pound. However, sterling rebounded slightly once Mrs. May said there will be an implementation period of about two years, which gives more time for the U.K. and its currency to adjust to the new landscape.

Friday, September 8, 2017

Why Sterling's Fall Will Hurt

Why Sterling's Fall Will Hurt: The U.K. economy will perform better this year than expected. After that, the future's not so bright.
ECB Weighs Ending Stimulus as Fed Calibrates Its Easy Money Stance: The European Central Bank is likely to announce plans next month for phasing out the bond-buying program that has helped reinvigorate the eurozone economy, while the U.S. Federal Reserve is weighing how aggressively to retreat from its own easy money policies.
ECB Will Have Trouble Getting Out of Strong Euro Bind: The European Central Bank looks set to decide in October on how its bond-buying program will change in 2018. Looming over the proceedings is the surging euro.
France's Emmanuel Macron Takes EU Renewal Push to Greece: The European Union will crumble if it isn't overhauled, French President Emmanuel Macron said Thursday in Athens, attempting to reinvigorate his call for greater sharing of financial burdens in the eurozone.