Market sentiment improved overnight after the PBOC proceeded with the RRR cut announced on the 4th of January, while several Chinese officials noted that more stimulus measures are on the way. As for today, market participants are likely to turn their attention to the UK Parliament’s vote over the Brexit deal agreed by PM Theresa May and the EU. With the plan set to be voted down, the big question on everyone’s mind may be: What happens next?
Risk Appetite Rebounds as Chinese Officials Signal More Stimulus
The dollar was found lower against most of the other G10 currencies this morning. It gained only against JPY, while it traded nearly unchanged against EUR, CAD and SEK. The main winners were NZD, GBP and AUD.
The Swedish Krona traded virtually unchanged against its US counterpart despite Sweden’s better-than-expected inflation data. Although the CPI rate remained unchanged as was anticipated, the CPIF rate rose to +2.2% yoy, exceeding estimates of +2.1%, while the core CPIF rate, which...
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