We have had a massive unwind of short US dollar / long RMB positions from the hedge fund community given the slower pace of the RMB appreciation from the People’s Bank of China (PBOC). The positions have been exited as a result of the general US dollar rally versus the EUR and GBP over the [...]
Opportunity to Hedge A Short RMB (CNY) exposure
May 8th, 2008 · No Comments
Tags: FOREX Hedge
No dollar bottom yet
April 4th, 2008 · No Comments
EUR wins ‘ugly contest’- easily
EUR/USD peaks after, not before, Fed Funds target rate has bottomed, so not yet. Cue a break through 1.60 as the Fed cuts to 1.50%, or less. Relative to the end January Quarterly, we are much less sure that ECB cuts soon and a bit surer that Bank of England cuts [...]
Tags: Global Fundamentals
China Face Chanllenges
March 24th, 2008 · No Comments
CPI inflation jumped to 8.7% yoy in February, the highest level since May 1996. The spike in CPI prices was driven by higher food prices, which rose by 23.3% yoy, while non-food prices rose by 1.6% and core inflation excluding food and energy remained at 1%. The pick-up in food price inflation was mainly due [...]
Tags: Asia and China