Forex Analysis

CNY: The over-invoicing phoenix

Over-invoicing has been a recurring problem in Chinese export data,

The USD weakened slightly against majors, with the exception of USDJPY, which rallied to 107.4.

Core bond yields continued to rebound on Friday, and curves saw some bear-steepening.

The pair started the day at $0.8749 this morning but was largely confined to a $0.8750 to $0.8765 range in the opening few hours.

The pair closed in NY Friday at $1.6093 as rate continued its recovery off Wednesday Oct15 lows of $1.5875,

The pair started the session today at $1.2760 after trading a $1.2744 to $1.2836 range during the US hours on Friday.

The pair started at Y107.22 while euro-yen opened at Y136.51 and then marked early highs of Y107.24 and Y136.74, respectively.

With the Q3 CPI due for release on Thursday we have taken the opportunity to have another look at our medium term inflation forecasts.

Global inflation modest – the US inflation rate is low and Eurozone at risk of deflation.

Over the past few weeks financial markets have been jitteryand volatile.

The USD (DXY) reversed back to re-test the multiyear downtrend – will it?

The SG FX Enhanced Risk Premia system has been building a long yen position comparable in size to