Peoples Bank of China

People’s Bank of China Slashes Banks’ Reserve Requirement to 18.5% from 19.5%

April 20, 2015

Sunday’s announcement was double the size of this year’s initial reduction of the reserve requirement ratio in February.  February’s 50-bp cut — the more typical magnitude of changes — had been the first cut since and easing in May 2012 capped off a flurry of three cuts in the space of a half-year.  The backdrop […] More

Dollar Up, Oil and European Equities Down on Final Day of the Quarter

March 31, 2015

The dollar rose overnight by 0.8% against the euro, 0.7% versus the Australian dollar, 0.6% relative to the loonie and Swiss franc, 0.3% vis-a-vis the kiwi and 0.1% against the yuan and sterling.  But the U.S. currency edged 0.1% lower versus the yen. Oil sank 2.2% to $47.62 per barrel.  Comex gold is steady at […] More

Chinese Monetary Policy Eased

March 2, 2015

The People’s Bank of China has loosened credit policy for the third time in just over three months. The one-year lending and deposit interest rates were reduced by 40 basis points and 25 bps, respectively, on November 21 to 5.6% and 2.75%. The reserve requirement ratio was sliced on February 5 to 19.5% from 20.0%. […] More

Market-Moving Comments and Then a Chinese Interest Rate Cut

November 21, 2014

ECB President Draghi gave a dovish speech reaffirming the central bank’s readiness to take further action to lift inflation back to target. U.S. President Obama spoke to the nation in prime time, announcing plans to permit some 5 million undocumented residents not to be deported. San Francisco Federal Reserve President Williams warned about the danger […] More

Crimea, Missing Malaysian Flight, and Lower Euro Area Inflation Top News

March 17, 2014

Over 95% of voting Crimeans signal desire to leave Ukraine.  Crimean parliament requests annexation by Russia.  Russian lawmakers to decide whether to do such.  Obama calls vote unlawful and threatens economic sanctions. Malaysian Airlines Flight 370’s whereabouts still unknown, but best guess is in one of the deepest parts of the Indian Ocean.  Evidence now […] More

Christmas Eve All Silent

December 24, 2013

Europe is now closed for the Christmas break, and trading desks in North America will shut early. Overnight movements in the dollar were minimal.  The greenback firmed 0.3% against the Swiss franc, 0.2% relative to the euro, and 0.1% against the yen and commodity-sensitive Canadian, Australian and New Zealand dollars.  Sterling edged 0.1% higher against […] More

Steadier Currency Landscape

November 8, 2013

The euro sank yesterday to as low as $1.3294 after the surprise ECB rate cut, but the lows didn’t hold.  Key currency relationships are steady today.  The euro is at $1.3419 and unchanged from Thursday’s close.  The dollar is also unchanged against the loonie, Australian dollar, sterling and yuan.  The greenback has edged up 0.1% […] More

Concerns about Rising Chinese Interest Rates

October 25, 2013

Short-term Chinese money market rates climbed higher overnight to multi-month highs.  The People’s Bank of China introduced a new prime lending rate. Key data releases this Friday include Japanese consumer prices, the German IFO business climate index, British 3Q GDP, and Euroland money and credit. Comments from the governor of the Reserve Bank of New […] More

Roller Coaster Ride in Asian Equities

June 25, 2013

The dollar has retreated 0.4% against the yen, 0.3% versus the loonie, and 0.1% against the Aussie dollar and sterling but has edged up 0.2% relative to the yuan and 0.1% vis-a-vis the Swiss franc and kiwi.  EUR/USD is steady at $1.3124. China led another steep decline in Asian share prices initially overnight, but losses […] More

Overnight Markets Uneasy

February 21, 2013

Equities dropped 3.4% in China, 2.3% in Australia, 1.7% in Hong Kong, 1.6% in India, 1.4% in Japan, 1.2% in Thailand, and 1.0% in New Zealand.  In Europe, share prices have so far slumped 2.9% in Italy, 1.9% in Germany and France, 1.8% in Spain and 1.7% in Britain. Bonds were hit in Europe.  The […] More