Archive for February, 2012
Filed under: My Paper
Social Tagging: asset purchases • CADJPY • Canada GDP • Greece bailout • oil prices rise • Profit Taking • retracement • US yields increase • USDJPY
(As written for My Paper on 28 February 2012. Click here to enlarge)
I am back in Singapore after speaking in the “China International Investment and Finance Expo 2012” held in Guangzhou.
Although China has announced slowdowns in manufacturing, exports and housing, the Forex community there seems to suggest otherwise with the buzz in the Expo.
Speaking of buzz, the buzzword this week is “profit-taking.”
Filed under: My Paper
Social Tagging: asian currencies • audusd • China • Greece bailout • interest rates • National Statistics Bureau • positive sentiment • Reserve Requirement Ratio • risk assests • risk currencies
(As written for My Paper on 21 February 2012. Click here to enlarge)
Over the weekend, China announced a 50 basis-point cut in the Reserve Requirement Ratio.
This is essentially the proportion of cash that banks must set aside as reserves. The change will take effect on 24 February, and the figure will fall to 20.5% from 21%.
This is the second time in three months that China has cut its reserve ratio. According to ANZ Bank and UBS AG, the cut may add 350 to 400 billion yuan to the financial system. Read more…
Filed under: My Paper
Social Tagging: Brazilian Real • carry trade • EURJPY • European debt crisis • Greece bailout • Greece debt • Greek Prime minister • low yielders • market rally • Mexican Peso • risk currencies • South African Rand • Support and Resistance
(As written for My Paper on 14 February 2012. Click here to enlarge)
Over the weekend, Greek Prime Minister Lucas Papademos won parliamentary approval for austerity measures to secure a second international bailout and avoid national bankruptcy.
Out of 300 lawmakers, a total of 199 backed the bill. The passing of the austerity bill was a boon for market traders who heaved a sigh of relief and piled on risk trades; causing markets to rally.
The temporary cheers in the financial world seem to hide the deep resentment among the Greeks. Before bill was passed, protesters and rioters were having a field day, setting cinemas, cafes, shops and banks ablaze in central Athens. Read more…
