The Singapore dollar edged higher after suspected central bank intervention, though Asian currencies looked wobbly and remained vulnerable amid expectations the US Federal Reserve will pick up the pace of interest rate rises in 2017.
The dollar headed into the Christmas break just over half a percent off highs hit after this month’s US Federal Reserve policy meeting, with a handful of second tier data unlikely to disturb markets already firmly in holiday mode.
Sterling headed for its biggest weekly fall in almost three months, although data showing that the UK economy grew faster than expected in the third quarter helped lift it from a seven-week trough against the dollar.
Sterling turned in another grim pre-Christmas session, with Brexit jitters more than offsetting well-received economic data and again among the factors undermining the British currency in the countdown to year’s end.
- What Does Next Year Have in Store for the Pound and Will We See Euro/Dollar Parity? – International Business Times
China’s weakening yuan is threatening a reprise of the storm that dominated world markets at the start of 2016, with Beijing’s ability to stamp on short-term speculators undermined by a broader consensus among major global investors that the currency will fall.
Expectations of a resurgence could be nothing more than a seasonal sop.
But the real action is in the currency, which the central bank suppresses in an effort to support inflation – a policy the central bank reaffirmed.
Turkey’s battered currency is on course to suffer its worst annual slump since the height of the financial crisis in 2008, according to data from Reuters.
Go long on the Indian rupee while shorting the Singapore dollar.
- Rupee and Renminbi Are Probably Safer Havens as Currencies Go: Prateek Agarwal, ASK Investment – Economic Times
Bonds, currencies and stocks in Asian emerging markets that are less dependent on external demand, such as India and Indonesia, are the most popular picks for investors and strategists next year.
If currencies are any barometer for the health of an economy, or at least for investor’s perceptions of the health of an economy, this year has seen considerable variations and fluctuations.
Many investors whiffed on profiting off Brexit vote and US presidential election.
European regulators hope to impose new risk management and supervisory standards for CCPs.
Criteria to assess which package transactions are liquid are too broad, industry warns.
The central banks of Thailand, Indonesia and Malaysia agreed to promote use of their currencies for trade and investment among the three nations, the latest move by emerging economies to reduce exposure to volatile global markets.
Bob Burke, managing director, FICC futures, and Michael Johnson, director, FICC futures, have both left Bank of America Merrill Lynch (BAML) in New York, a spokesperson confirms.
The acquisition will help GFI increase its global footprint in South Africa.
Bloomberg dollar spot index now provides a better measure of global currencies against the US dollar.
Brazil’s currency strengthened, touching its strongest level against the dollar in over a month, while the Mexican peso hit its weakest level in three weeks.
The Australian dollar briefly dipped below the US72¢ mark in overnight trade, as iron ore fell for a fifth day.
Romania’s leu fell to a six-month-low against the euro and multi-week lows against Central European peers amid concerns that the next government in Bucharest will let the budget deficit rise.