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Forex Flash: China would likely lower inflation from Commodity price drop - Nomura

FXstreet.com (Barcelona) - Nomura economists believe that should commodity prices continue to fall, China would likely see lower inflation against a lower commodity price backdrop, which could reduce the risks of policy tightening (through FX appreciation/rate hikes).

However, they feel that China´s current account surplus is expected to increase on lower commodity prices, with a a pickup in capital inflows could still mean CNY appreciation. They write, “We would also expect pressure from the US for greater CNY flexibility/appreciation to grow (underscored by the recent US Treasury semi-annual FX report (12 April 2013)). Indeed, discussions on widening the spot USD/CNY band have heated up recently and we believe we could see a move within the next six months with USD/CNY (CNH) possibly making new lows.”

Forex Flash: The fall in Gold is not bad news for everyone - DBS Group

DBS group analysts note that the fall in gold prices was not necessarily bad news for everyone.
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Forex: EUR/JPY pierces 130.00 level

The EUR/JPY has streamed ahead to the session highs during European trading Friday, helped in part by the rapid setbacks facing the yen. In these moments, the pair has topped out at he 130.05 level (intraday maximum), before easing slightly to 129.88/93.
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