China Crisis Series

Outflow of Fx reserves continues, and so does PBoC's dilemma

Feb 09, 2016 14:33 pm UTC| Commentary Central Banks

Despite the impressive $ 3.2 trillion PBoCs FX holdings, the speed at which the PBoC once again lost FX reserves in January is quite alarming. Since top levels reached in the summer of 2014, 19% of the PBoCs reserves have...

Is it Yellen or Zuma? The pace of the ZAR rout likely to ease as investors eye on policy minutes and SA budget insights

Feb 09, 2016 12:52 pm UTC| Commentary Central Banks

Although the ZAR oscillated within a range of 15.77-16.43/USD range from last week, it went into the weekend largely unchanged on the week at 15.85/USD. The ZAR initially weakened during the first half of the week in...

Currency snapshot (major pairs)

Feb 09, 2016 12:50 pm UTC| Commentary

Dollar index trading at 96.50 (-0.20%). Strength meter (today so far) - Euro +0.32%, Franc +0.71%, Yen +0.60%, GBP -0.22% Strength meter (since last week) - Euro +0.65%, Franc +1.04%, Yen +1.56%, GBP -0.67% EUR/USD...

Markets now focus on Fed’s Yellen for further cues

Feb 09, 2016 12:23 pm UTC| Commentary Central Banks

The Fed is in a comfortable position to weaken its currency much more effectively as compared to the ECB. Even though the central bank is widely expected to raise interest rates, the fear among the markets that the Fed...

China Crisis Series

Chinese economy growth, commodity prices continue to drive FX markets

Feb 09, 2016 11:54 am UTC| Commentary Economy

A couple of weeks back, the yen longs rose to their highest levels since February 2012, however, they dropped back to their mid- January levels, after the BoJ surprised the market with its rate cut. The USD long levels...

EUR likely to appreciate amid growing global turbulence

Feb 09, 2016 11:36 am UTC| Commentary

The ECB has indicated further monetary policy easing measures, while the Fed is yet to hike interest rates in its next meeting. In the past couple of weeks, the USD has eased remarkably while euro has appreciated on a...

Metal Supply & Demand Series

Goldman Sachs calls for $1000/troy ounce gold by year end

Feb 09, 2016 11:35 am UTC| Commentary

Hope for gold bears. US investment bank giant Goldman Sachs, which predicted oil could drop to as low as $20/barrel, thinks the current rally in gold unlikely to last and not only that but Gold could drop to as low as...