15 Nov 2013
Flash: Chinese reform headlines led sentiment into Europe - BMO Capital Markets
FXstreet.com (Barcelona) - Stephen Gallo, European Head of Currency Strategy at BMO Capital Markets comments that thanks to China, the bulk of interest this morning in London was pinned on headlines as opposed to flow or price action.
Key Quotes
“Presumably discussed and hammered out at the CPC’s Third Plenary Session of the 18th CPC Central Committee, the importance of the more detailed list of sweeping social and market-based reforms in mainland China can hardly be exaggerated.”
“In terms of ‘image’, we view these details of reform as something which should instantly boost the medium-term profile of the CNY, and we’d be very surprised if reserve managers everywhere weren’t ‘taking note’.”
“In order to draw the links between these reform plans and G10 FX, we need to remind ourselves of why the reform effort is so important to China, and why it’s taken so seriously. From about the middle of the 19th century straight through to the very early 1980s, China essentially hobbled from one crisis to the next. This fact makes achieving stability today an enormous trophy for the nation.”
Key Quotes
“Presumably discussed and hammered out at the CPC’s Third Plenary Session of the 18th CPC Central Committee, the importance of the more detailed list of sweeping social and market-based reforms in mainland China can hardly be exaggerated.”
“In terms of ‘image’, we view these details of reform as something which should instantly boost the medium-term profile of the CNY, and we’d be very surprised if reserve managers everywhere weren’t ‘taking note’.”
“In order to draw the links between these reform plans and G10 FX, we need to remind ourselves of why the reform effort is so important to China, and why it’s taken so seriously. From about the middle of the 19th century straight through to the very early 1980s, China essentially hobbled from one crisis to the next. This fact makes achieving stability today an enormous trophy for the nation.”