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2 Mar 2015
USD/CNH makes a new yearly high post PBoC’s further easing – SG
FXStreet (Barcelona) - Kit Juckes of Societe Generale, comments on the Chinese data release and PBoC’s rate cut impact on CNH, and further prefers remaining short Yen.
Key Quotes
“We kicked off the week with news of further easing from the PBoC, in the form of a 25-bp rate cut. The official manufacturing PMI stayed (just) below 50 and although the non-manufacturing measure at 53.9 narrowly beat last month' reading the pressure on the PBoC to help a slowing economy remains intact.”
“USD/CNH has made a new high for the year and in the process, the yen is slightly weaker too.”
“Whether risk assets will be spooked by signs of slowing growth or buoyed by easier policy isn't always clear but I'll guess that the week starts positively for equities et al and stick with short yen trades for now. Namely, we stay long GBP/JPY. “
Key Quotes
“We kicked off the week with news of further easing from the PBoC, in the form of a 25-bp rate cut. The official manufacturing PMI stayed (just) below 50 and although the non-manufacturing measure at 53.9 narrowly beat last month' reading the pressure on the PBoC to help a slowing economy remains intact.”
“USD/CNH has made a new high for the year and in the process, the yen is slightly weaker too.”
“Whether risk assets will be spooked by signs of slowing growth or buoyed by easier policy isn't always clear but I'll guess that the week starts positively for equities et al and stick with short yen trades for now. Namely, we stay long GBP/JPY. “