China Trade Rebounds
G10 FX currency markets were driven by Chinese data releases overnight. A strong set of Chinese trade numbers boosted the Australian and New Zealand dollars in particular, but the risk rally was unusually selective − neither the euro nor sterling joined in. Exports rose +14.1% y/y (cons. 5.0%) and imports were +6.0% stronger (cons. 3.5%). Earlier, China’s loan data showed a significant expansion of total social financing in December to CNY 1.63 trn (prev. CNY 1.14 trn), although there was minimal FX reaction to this. USDJPY resumed its upward march ahead of the Bank of Japan’s policy decision on Jan 22nd. Yet another press report appeared claiming a 2% inflation target is likely to be adopted – but i n v estors have heard it all before at this stage.
Click here to read the full report: UBS Morning Adviser Europe
UBS Investment Bank