6 Jan 2016
US dollar gaining momentum as Chinese data weakens - Investec
FXStreet (Delhi) – Research Team at Investec, suggests that the US Dollar strength is unsurprising as we enter a fresh year for large portfolio managers looking to build positions for 2016.
Key Quotes
“With the Fed now in a hiking cycle (more details should come in tonight's FOMC minutes), and growth concerns continuing in China causing a rush for the world's reserve currency.”
“Overnight the Caixin China Service PMI (an unofficial private reading) contrasted to the official release, dropping to a 17 month low of 50.2 against November's 51.2 reading. Only just in expansionary territory above 50 and the second lowest reading since the series began a decade ago. China (always a concern for data reliability) said Friday that its official Non-Manufacturing PMI rose to 54.4, the highest level since August 2014. To add to the concern, Caixin’s China Composite PMI, which covers both Manufacturing and Services, dropped to 49.4 in December from 50.5 the previous month, contractionary territory.”
Key Quotes
“With the Fed now in a hiking cycle (more details should come in tonight's FOMC minutes), and growth concerns continuing in China causing a rush for the world's reserve currency.”
“Overnight the Caixin China Service PMI (an unofficial private reading) contrasted to the official release, dropping to a 17 month low of 50.2 against November's 51.2 reading. Only just in expansionary territory above 50 and the second lowest reading since the series began a decade ago. China (always a concern for data reliability) said Friday that its official Non-Manufacturing PMI rose to 54.4, the highest level since August 2014. To add to the concern, Caixin’s China Composite PMI, which covers both Manufacturing and Services, dropped to 49.4 in December from 50.5 the previous month, contractionary territory.”