FXStreet (Guatemala) – Analysts at Rabobank noted the events that have taken place in Asia overnight and this morning.
Key Quotes:
“In China the Shanghai index plunged 5.0% at the open but recovered to close down just 1.7% after what many suspected was further state-backed buying: how much longer can that really last? (i.e., it is both noise and signal.) The Wall St Journal quotes a lamenting former PBOC official today that “There is no Alan Greenspan or Mario Draghi in China.” (Although only history will judge whether that is actually a bad thing.)
This morning we also saw Japanese retail sales for June: they were -0.8% MoM and up just 0.9% YoY. That should be another clear signal to most observers – except the BOJ of course: they continue to believe that increasing inflation increases consumer demand, when all the evidence shows the causality flows the other way.”
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