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Forex Flash: Chinese local debt catches eye of ratings agencies – Deutsche Bank

FXstreet.com (Barcelona) - The FT recently reported that a senior Chinese auditor and vice-chairman of China's accounting association have described the local government debt situation in the country as out of control. According to Macro Strategy Analysts J. Reid and C. Tan at Deutsche Bank, “These comments comes after the recent warnings from Fitch and Moody's about the risks of China's local government debt.”

The auditor says his firm has stopped signing off on bond sales by local governments as "most don't have very strong debt servicing abilities". On a related note, there has been some focus on Chinese corporate defaults after Chinese solar company, LDK Solar, reportedly defaulted on a bond on Monday. This follows last month's default of its peer Suntech Power, which was once the world's largest solar-panel maker by capacity.

Forex Flash: FX majors offer mixed biases – UBS

UBS Strategists, Gareth Berry and Geoffrey Yu take a technical perspective at today's majors and outline the technical positions.
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Forex: EUR/CAD tumbles on ECB Weidmann’s suggestion of rate cut

The EUR/CAD is at a fall, not in reaction to the BoC monetary policy announcement but to Buba’s Weidmann interview to WSJ suggesting a ECB rate cut soon if economic data remains gloomy, where he also warns of its side-effects: “Medication monetary policy makers administer only cures the symptoms and that it comes with side-effects and risks”. Weidmann believes it might take a decade for Europe to recover. The EUR/CAD fell from just below 1.3500 to print a low at 1.3386. The market has bounced back above the 1.3400 and is trading at 1.3425.
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