WILL THE G10 CURRENCIES CONTINUE RANGING?

CHINA - Investor Flows:

Investors pulled $2.9bn from funds that invest in China’s stock market in the month ending last Wednesday, as concerns over economic growth and tariffs weighed on Chinese shares

FX Overnight update:

In the G10 space, SEK, CAD & AUD strengthened, but NZD landed well towards the lower end of the pile.

Key events from yesterday:

  • U.S.Sec of State Pompeo noted that a trade deal with China could be struckby the 2020 election,
  • The PBoC fix was slightly firmer than exp., while
  • U.S.North Korea Rep Biegun said that Washington is ready to restart talks with Pyongyang.

Worth highlighting that G10 crosses mostly respected ranges. In Asian FX, USD/CNH eased off after the PBoC fix. Meanwhile, KRW gained poise on the back of a BBG report stating that a Japanese material maker JSR has received a permit to resume shipments to South Korea.

Economic Data:

Europe' shighlight on Wednesday is the release of UK's public finances data at 0930 BST, while the publication of Canadian inflation figures at 1330 BST and data on US existing home sales at 1500 BST are awaited eagerly in North America.

USD/KRW (black) vs USD/JPY (purple) vs USDCNY (yellow)

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Posted on

August 21, 2019

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