The Two Stories of China

19 October, 2016

The latest numbers from China make for comfortable reading, with growth of 6.7%, industrial production moderating to 6.1% and retail sales comfortably into double figures. Remember though that these numbers are not the centre of concern in China. It’s debt, the level, distribution and level of potential bad loans. Of course, one could have pointed this out last year, the year before and the year before that, but the economy continues to produce decent numbers, certainly in comparison to other major economies. USDCNY has been moving higher for most of the month, although this more down to authorities accommodating the firmer dollar, with the yuan still firmer against sterling, the euro and the yen during the month.

Sterling was the interesting mover yesterday. It was less to do with the slightly firmer than expectation inflation data, more to do with a currency that has been over-sold for some time finding a reason to reverse higher. The latest Brexit news, suggesting legal advice is erring towards the UK parliament having to ratify any final deal between the UK and EU, was seen as supportive for such a correction. Cable broke higher from the wedge pattern that had been forming over the past week, whilst EURGBP fell back below the 0.90 level. For today, there is labour market data at 08:30 GMT, with the Bank of Canada rate decision following later in the day. No change expected, with some residual hopes for a more dovish BoC, which if not seen, could lead to some modest short covering on the CAD.

Source link  
Consumer Sentiment Index Close to Higher

US Fed Boston President Rosengren is due to deliver the keynote speech on the economic outlook, at the Greater Boston Chamber’s Economic Outlook Breakfast...

Chinese president soothes worries

With US Producer Prices data on the way this afternoon, and predicted to be largely as expected, the morning session will be dominated by central bankers...

Markets fall after more tariffs proposal

Friday's session is expected to be volatile, with Non-Farm Payrolls (13:30 UK Time) ahead and President Trump’s proposal for an additional $100B...

Korea gets exemption on steel tariffs

The US and South Korea have reached agreement on a Trade deal that comes with the added bonus for South Korea of a permanent exemption from...

EU Publishes List of Tariffs on US Goods

Over the weekend, the EU published a list of tariffs on US products in response to the US tariffs on Steel and Aluminium. The total value of EU tariffs...

Consumer Price Index and Housing Starts

Eurozone Consumer Price Index – Core (YoY) (Feb) will be released. The consensus points to an unchanged value of 1%. Consumer Price Index...

USD Weakens as Risk-Off Returns

Yesterday, the US announced Tariffs on Steel and Aluminium, which prompted an outcry from various global leaders and an acceleration in the...

Volume of data put US in focus

US Gross Domestic Product Annualized (Q4) was as expected at 2.5%, from 2.6% previously. Gross Domestic Product Price Index (Q4) was 2.3%...

Markets wait for new Fed chairman Powell

The ECB’s Coeure spoke in Frankfurt at a working group meeting regarding euro risk-free rates. He said that a reform of reference interest rate will...

In the past 24 hours Bitcoin has lost -0.38% and reached $8809.48. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 0% and is now at $0. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 20.84% and is now at $628.843. Have the most popular cryptocurrencies compared online 24/7.

Top Brokers offering Daily Forex Market Reviews

Forex Currencies Forecasts

Top 10 Forex Brokers 2018

# Broker Review
5FIBO GroupFIBO Group82%
8Fort Financial ServicesFort Financial Services67%