GERMAN TAKES THE STEP
Germany’s central bank has decided to include the Chinese yuan in its own reserves, in a further boost to the international status of the currency. Speaking at an event in Hong Kong on Monday, Bundesbank board member Andreas Dombret said the decision was taken last year following an investment of 500 million euros ($611 million) by the European Central Bank, of which the German authority is a part. He said he wouldn’t comment on the amount that would be allocated. “The renminbi is used increasingly as part of central banks’ foreign-exchange reserves — for example, the ECB included the RMB but also other European central banks did so,” Dombret said during a speech in Hong Kong Monday. Read More @ https://www.bloombergquint.com/global-economics/2018/01/15/bundesbank-to-include-yuan-in-currency-reserves-dombret-says
CHINA GOES BEYOND – China Vows to Toughen Rules on $38 Trillion Banking Industry
China’s banking regulator pledged to continue its crackdown on malpractice in the $38 trillion industry in 2018, vowing to tackle everything from poor corporate governance and violation of lending policies to cross-holdings of risky financial products.
The China Banking Regulatory Commission unveiled its regulatory priorities for the year in a statement on Saturday. They include:
- Inspecting the funding source of banks’ shareholders and ensuring they have obtained their stakes in a regular manner
- Examining banks’ compliance with rules restricting loans to real estate developers, local governments, industries burdened by overcapacity, and some home buyers
- Looking into banks’ interbank activities and wealth management businesses. Read More @ https://www.bloombergquint.com/china/2018/01/15/china-vows-to-toughen-rules-on-38-trillion-banking-industry
ABE – DOES THE TRICK AGAIN AND KEEP THE SPECULATORS AWAY FROM JPY.
Bank of Japan (BOJ) governor, while speaking at Bank branch managers meeting, said- Will keep QQE with YCC (yield curve control) as long as needed to achieve the 2 percent inflation target. Japanese economy likely to continue expanding moderately. Will continue expanding monetary base until consumer inflation stably eceeds 2 percent.
TUESDAY NEWS – NEWS TO WATCH FOR THAT MAY DISRUPT YOUR TECHNICAL APPROACH.
- 3.00pm – German will start off the day with the CPI DATA release and is expected to be all good
- 5.30pm – Be ready for UK CPI – volatility is expected and we are expecting a good data from UK. We maintain BUY for GBP.
- 9.30pm – Empire state manufacturing data will be release in the US and we are expecting a stagnant data. We maintain Sell for USD.
- Midnight – Jordan from SNB will speak and CHF will be impacted – We stay neutral for now.
The market still favors CNH, EURO, AUD, NZD and GBP instead of USD for – this week we maintain SELL for USD.
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