FXStreet (Edinburgh) – Flemming Nielsen, Senior Analyst at Danske Bank, noted the markets will turn their focus on US data and Chinese events.
Key Quotes
“In a week light of tier-one data, focus in FX markets will continue to be on US data and how the PBoC acts within the new exchange-rate system announced last week”.
“If we are right that the degree of CNY depreciation will fade, the broader impact on the FX market should wane, and the more severe deflationary impetus from falling commodity prices will fundamentally take over as a key market theme”.
“As we see a clear risk of oil prices falling further in the short term (albeit the bottom should not be far off) the potential for a revival of the currency war is certainly omnipresent”.
(Market News Provided by FXstreet)