Asian Markets Wobble as AI Fears Rattle Stocks, Oil and Gold Rebound 
Paul Atkins Emphasizes Global Regulatory Cooperation at Fintech Conference 
Fed Confirms Rate Meeting Schedule Despite Severe Winter Storm in Washington D.C. 
Asian Currencies Trade Sideways as Dollar Stabilizes, Yen Weakens Ahead of Japan Election 
Japan Services Sector Records Fastest Growth in Nearly a Year as Private Activity Accelerates 
RBA Expected to Raise Interest Rates by 25 Basis Points in February, ANZ Forecast Says 
Asian Currencies Strengthen as Indian Rupee and Australian Dollar Rally 
US-India Trade Bombshell: Tariffs Slashed to 18% — Rupee Soars, Sensex Explodes 
JPMorgan Lifts Gold Price Forecast to $6,300 by End-2026 on Strong Central Bank and Investor Demand 
OCBC Raises Gold Price Forecast to $5,600 as Structural Demand and Uncertainty Persist 
Bank of Canada Holds Interest Rate at 2.25% Amid Trade and Global Uncertainty 
Australian Scandium Project Backed by Richard Friedland Poised to Support U.S. Critical Minerals Stockpile 
Stay short EURCZK: We continue to expect the CNB to discontinue the FX floor at the May 4th regular policy meeting.
We estimate that inflation jumped again in February, reaching 2.5%oya, from 2.2% in January.
We expect the CNB will to some extent qualify the data with the fact that the acceleration is mostly food driven, but it will also welcome the development as another signal of broader inflationary pressures in the economy. If our forecast is on the mark, inflation would be 0.4%pts above the CNB’s 2.1% forecast for February. We think the MPC is already convinced about exiting the FX floor in near term, but another higher than expected inflation print would help dissipate any remaining uncertainty.
We remain positioned for a removal of the floor policy with a 26.0 target, with the koruna being fundamentally undervalued.
Stay short EURCZK forward –sold 26.6883 expiry 27 November, 2017. Marked at -0.48%
Short USDARS: We encourage shorts in USDARS as we see further ARS upside on agricultural exports, and tax amnesty inflows amid a cautious Central Bank.
The Minister of Treasury announced the revamped fiscal objectives for 2018 and 2019, indicating that the government strategy is to boost credibility on the gradual fiscal consolidation.
The official activity indicator confirmed Q4’16 sequential expansion.
The 12-month primary fiscal deficit reached ARS340.7bn (4.4% of GDP) in January.
We expect both the cyclical phase of the economy and more willingness to control fiscal accounts to steer the ship toward fiscal discipline.
We revise our 2017 primary fiscal deficit forecast to 4.4% of GDP (from 4.6%, previously).
Short USDARS 6-month NDF.
