3 Feb 2014
Flash: EM FX sell off continues on Chinese PMI - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ notes that the EM FX sell off continued overnight on the release of the latest Chinese PMIs.
Key Quotes
"The emerging market currency sell off has continued overnight following the release of the latest PMI surveys from China which have reinforced investor concerns over slowing economic growth. The official manufacturing PMI survey, which was released over the weekend, revealed that business confidence declined by 0.5 point to a six-month low of 50.5 in January."
"It echoed weakness already evident in the HSBC/Markit manufacturing PMI survey. The new orders sub-component declined even more sharply by 1.1 point to 50.9 in January, while the employment sub-component fell even further the below the 50-level to 48.2 in January which as the lowest reading since February 2013."
"The National Bureau of Statistics stated that the report was “affected by seasonal factors related to the Chinese New Year” which makes it difficult to assess the underlying economic growth signal. The release overnight of the official China non-manufacturing PMI survey also added to slowing economic growth concerns with business confidence declining by 1.2 point to 53.4 in January reaching its lowest level since February 2012."
Key Quotes
"The emerging market currency sell off has continued overnight following the release of the latest PMI surveys from China which have reinforced investor concerns over slowing economic growth. The official manufacturing PMI survey, which was released over the weekend, revealed that business confidence declined by 0.5 point to a six-month low of 50.5 in January."
"It echoed weakness already evident in the HSBC/Markit manufacturing PMI survey. The new orders sub-component declined even more sharply by 1.1 point to 50.9 in January, while the employment sub-component fell even further the below the 50-level to 48.2 in January which as the lowest reading since February 2013."
"The National Bureau of Statistics stated that the report was “affected by seasonal factors related to the Chinese New Year” which makes it difficult to assess the underlying economic growth signal. The release overnight of the official China non-manufacturing PMI survey also added to slowing economic growth concerns with business confidence declining by 1.2 point to 53.4 in January reaching its lowest level since February 2012."