Archives of “September 2, 2019” day

rss

Morgan Stanley revise forecasts higher for yen, CHF

  
Analysis, Forex

A note from MS late last week with a set of look ahead forecasts

The bank expects further strength of yen and Swiss, lower EM and commodity currencies
  • USD index to remain supported
  • risk and growth outlook likely to weaken further
  • further trade tensions
  • Fed less likely to turn more dovish
  • risk of a global recession rising
Forecasts:
               Q4                                    Q1 2020
USD/JPY  101 (from 102 previously)    100 (100)
EUR/USD 1.15 (from 1.16)                 1.17 (1.18)
EUR/CHF 1.08 (1.17)                         1.10 (1.18)

China state media on the US’ “utile trade war” – stop acting as a “school bully”

  
Analysis, Politics
#  #  #  #  #  #  #  #

Xinhua News Agency the official state-run press agency of the People’s Republic of China urges Washington to start learning at least four lessons from their futile trade war with China

You can click the link here for the four lessons if you like, but in brief its not a conciliatory piece. Some snippets:
  • China is an unbent nail in face of U.S. tactic of maximum pressure
  • China’s determination to fight against the U.S. economic warmongering has only grown stronger
  • their trade war is hurting the American people and businesses
  • the United States should learn how to behave like a responsible global power and stop acting as a “school bully.”
Finishes with a dig at the guy with the little red hat:
  • Only then can America become great again.

Argentina imposed currency controls over the weekend – restricts buying of USD

  
Analysis, Forex

Banco Central de la República Argentina has restricted sellers of pesos, concerned on the rundown in reserves

Statement:
 “Given various factors that impacted the evolution of the Argentine economy and the uncertainty in the financial markets, the executive branch needed to adopt a series of extraordinary measures aimed at ensuring the normal functioning of the economy, sustaining the level of activity and employment and protecting consumers”
  • restricts buying more than $10,000 US per month, or making transfers exceeding that amount per month
  • requires companies to sell their dollars from exports in the local market, not permitted to hold the dollars
On Friday the central bank announced banks need to seek prior authorization before distributing their earnings
Go to top