Action packed session with sharp NZD fall and Brazil downgrade – TDS

By FXStreet FXStreet (Delhi) – Cristian Maggio, Head of Emerging Markets Strategy at TDS, notes that with so many macro releases and events, today’s session had everyone occupied and at times caught with a surprise.

Key Quotes

“The highlights of the day are the NZD falling 1.4% following the RBNZ cut (though this was 95% priced in, the currency got a 2% thumping before paring back some losses), Brazil’s downgrade to junk from S&P last night, and more recently a likely intervention from the PBoC in the CNH market following speculation that the Bank was planning on narrowing the CNH-CNY spread.”

“Moreover, the PBOC has increased the quota for net yuan inflows under a cross-border pooling scheme that enables companies to transfer the yuan between their onshore and offshore entities freely, two sources told Reuters on Thursday, while allowing foreign central banks in the onshore FX market.”
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Source:: FX Street