OctaFX | OctaFX Forex Broker
Open trading account
Back

China: High inflation spike – ANZ

China has surprised markets with the inflation data for the month of January, as China market economist at ANZ Research Zhaopeng Xing notes. The USD/CNY is currently trading at 6.9804 after seeing a fall with the news.

Key quotes

“China’s CPI overshot market expectations in January, partially due to the virus outbreak, because a 1.4% m/m spike is higher than the seasonal increases seen over the past three years.”

“The virus outbreak has dampened commodity prices with Brent crude dropping more than 20% over the past two weeks. We expect China’s PPI to turn negative in February, exerting downward pressure on industrial activities in H1 2020.”   

“The probability of another cut in the 7-day reverse repo is low, as the People’s Bank of China (PBoC) will place emphasis on financial stability and efforts to contain the virus via liquidity injections and re-lending.”

 

Gold Futures: Further upside likely in the near-term

In light of flash data from CME Group for Gold futures markets, traders added almost 2.9K contracts to their open interest positions on Friday, record
Read more Previous

Slovakia Industrial Output (YoY) below forecasts (-3%) in December: Actual (-7.1%)

Slovakia Industrial Output (YoY) below forecasts (-3%) in December: Actual (-7.1%)
Read more Next
Start livechat