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Further RRR cuts by the PBOC are likely - Capital Economics

FXStreet (Bali) - Mark Williams, Economist at Capital Economics, notes that further RRR cuts by the PBOC are likely, expecting probably another 150bp before the end of the year.

Key Quotes

"Sunday’s cut to the required reserve ratio (RRR) for China’s banks signals a stepping-up of policy support. It also suggests that any concerns policymakers have about the rapid gains in equity prices have been put on the back burner for now. The RRR has been reduced by a minimum of 100bp, effective on Monday. It now stands at 18.5% for large banks."

"The decision is a response to the weakness of recent economic data. We suspect this was partly the result of lingering disruption from Chinese New Year. Further RRR cuts are likely – perhaps another 150bp before the end of the year – along with at least one more cut to benchmark interest rates."
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RBA Stevens say's Aussie will likely fall further - Westpac

Sean Callow, analyst at Westpac Banking Corporation noted that AUD/USD began its descent in early London around 0.7820, then dropped from 0.7770 to 0.7715 on the release of the prepared text of Governor Stevens’ speech.
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The day ahead and key events - Rabobank

Analysts at Rabobank explained the key events coming up.
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