OctaFX | OctaFX Forex Broker
Open trading account

Flash: China MNI Business Indicator drops - Nomura

FXstreet.com (Barcelona) - Nomura economist Zhiwei Zhang notes that the China MNI business sentiment indicator dropped to 56.7 in May from 58.5 in April, which is lower than the flash estimate of 57.1, released on 24 May.

He sees that the new orders component dropped to 56.1 in May from 58.2 in April, and the production component slid to 54.2 from 57.3. This reinforces his view that the official PMI to be released on 1 June, will drop to 49 from 50.6 (Consensus: 50). Further, liquidity conditions have tightened recently in China. He writes, “The 7-day repo rate rose to an average of 4% since 17 May from a 3.2% average from January to 16 May. This is consistent with our macro view that credit growth likely peaked in Q1 and will drop in Q2 as the government tightens controls on shadow banking activities.” Additionally, he feels that other factors that may have contributed to the high repo rate include the SAFE tightening measures on capital flows, the tax payments due in May, and the seasonal month-end effect on liquidity.

Flash: USD/CHF has eroded the March high - Commerzbank

Research teams and analysts at Commerzbank said that USD/CHF has eroded the March high and the short term uptrend at 0.9568/62.
Read more Previous

United Kingdom Consumer Credit down to £0.524B in Apr from £0.594B in Mar.

Read more Next
Start livechat