As is usual for a Monday morning, market liquidity is very thin until it improves as more Asian centres come online … prices are liable to swing around, so take care out there.
I posted this data from China over the weekend:
China once again into consumer price deflation. The poor data has a double meaning for financial markets. Its bearish in the sense that its terrible data, indicative of a consumer under pressure in China. On the other hand, it argues the need for more policy stimulus from China. While local governments in China are buried in debt, the central government has plenty of fiscal room to bolster policies to boost consumer spending. Given that hope springs eternal, I favour the second, bullish, take.
Indicative rates, a little change from late Friday, but not as much as we’ve come to expect over these past few weeks:
- EUR/USD 1.0836
- USD/JPY 147.93
- GBP/USD 1.2917
- USD/CHF 0.8797
- USD/CAD 1.4371
- AUD/USD 0.6309
- NZD/USD 0.5711