Category Archives: Currencies

Asian markets cautious as dollar continues retreat

Markets around Asia are trading cautiously as Wall Street and the US dollar weakened overnight and the price of oil has pulled back. Eyeing a possible third straight day of declines, the US dollar index is 0.1 per cent lower at 101.21 in Asian trade and facing its longest losing streak since the start of this month. The US dollar…

Mario Draghi’s difficult juggling act

The calendar is not kind to the European Central Bank. A week on Thursday, its governing council will deliberate, just days after Italy’s vote on constitutional reform, and a week before the bank’s US counterpart holds a meeting which could move the world’s bond and currency markets. Temporal pressure of another kind is also building, as the ECB buys €80bn…

Asia markets cautious as Wall St and dollar weaken

Tuesday 2.30am GMT Overview Markets across Asia were trading cautiously as Wall Street and the US dollar weakened overnight and the price of oil has pulled back. Hot topic Eyeing a possible third consecutive day of declines, the US dollar index was 0.1 per cent lower at 101.21 in Asian trade and was facing its longest losing streak since the…

Korean stocks, won strengthens after President Park offers resignation

South Korean stocks and the won strengthened as Park Geun-hye, the country’s embattled president, said she was willing to relinquish power in the wake of a mounting corruption scandal that has gripped the nation. The benchmark Kospi was up 0.2 per cent in the wake of President Park saying she was willing to step down and her request for parliament…

China clamps down on foreign M&A in battle against capital flight

China’s government is poised to impose new restrictions on outbound foreign investment in a bid to curb capital outflows that are putting downward pressure on the renminbi and draining foreign exchange reserves, according to sources. The State Council, China’s cabinet, will ban outbound investment deals worth more than $10bn or mergers and acquisitions above $1bn if they are outside the…

Markets digest news of China capital controls over lunch

Investors may keep a cautious eye on Chinese markets this afternoon following reports Beijing is poised to tighten capital controls and restrict the flow of outbound investment from the mainland. Further restrictions could have implications for companies and individuals keen to purchase assets offshore. The likes of Anbang, HNA Group, Fosun and Dalian Wanda have spearheaded an overseas shopping spree…

Pound enjoys respite as Brexit risk looms

A surging US dollar on the foreign exchange market, has encounter one obstacle in the form of pound sterling. The UK currency has held firm in November, rising nearly 2 per cent versus the dollar and set for its best monthly performance since January 2009. The Bank of England’s effective exchange rate index, which measures the value of the pound…

European stocks hovering under Italian nerves, waning US momentum

Stock markets in Europe are stuck in the mud after Wall Street retreated from record highs as the rally on hopes for a Trump-led US economic boost shows signs of losing momentum. US index futures suggest the S&P 500 will recover 2 points to 2,204 when trading gets under way later in New York, having retreated 12 points on Monday…

Oil currencies poised to get a boost if Opec secures output cut

The oil price has been unsurprisingly choppy in the lead-up to Opec’s meeting in Vienna on Wednesday. Will a deal to curb or cut production be reached? Perhaps more importantly, will any deal be adhered to? Sceptics expect “yes” for the former and “no” for the latter. But forex strategists at UniCredit think there is a greater chance of positive…

Renminbi holds ground against the dollar

The renminbi strengthened against the dollar on Tuesday after China’s central bank tightened its currency trading band for a second straight day. The People’s Bank of China set the midpoint of the onshore version of the renminbi’s 4 per cent trading band against the dollar at Rmb6.88890 on Tuesday, up 0.2 per cent from Monday. The renminbi remains near an…