The FX market moves were central theme as the US Dollar suffered minor losses and the Japanese yen currency remained in intervention territory.
In Asia, the People’s Bank of China fixed the onshore yuan stronger than expected at the reference rate setting today. This was the second day in a row the PBOC had set the CNY stronger than expected.
The yuan has been losing value rapidly and while the central Bank is unhappy with the decline and appears it is not comfortable with too rapid a pace.
Elsewhere, the Japanese finance minister Suzuki said recent FX moves are sharp, one-sided. He added that FX should move stably reflecting fundamentals and he “Will respond appropriately if FX moves become excessive.”
Also this morning New Zealand Finance Minister Grant Robertson undertook the RBNZ monetary policy committee remit and charter renewed.
Only minor changes were made. to the monetary policy framework The MPC now required to achieve and maintain inflation between 1% and 3% rather than keep.
This morning we have a host of central bank speakers from both the European Central Bank and the Bank of England. ECB President Lagarde headlines.
As part of her job in the Governing Council, Lagarde holds press conferences in detailing how the ECB observes the current and future state of the European economy. Her comments may positively or negatively the Euro‘s trend in the short term.
Up first we have Bank of England Monetary Policy Committee member Swati Dhingra is speaking at the UK Women in Economics Network on “tools for success.“
After that we have Dhingra is one of two rate-setters on the MPC who voted against further increases in borrowing costs recently and Bank of England MPC member Silvana Tenreyro takes part in a panel discussion on monetary policy at the European Central Bank conference in Portugal.
