China’s yuan is under pressure, China’s central bank take action.
China’s central bank has instructed top lenders to keep their foreign exchange positions open to reduce yuan downward pressure. Banks are not to square their inter-bank foreign exchange holdings after U.S. dollar sales to clients until their spot foreign exchange position reaches a specific level. This will absorb some of corporations’ hefty dollar purchases and…
Canada’s Laurentian Bank plans on changing its organizational structure to recruit more buyer
Laurentian Bank, Canada’s ninth-largest lender, has announced plans to simplify its organizational structure to increase shareholder returns after failing to find a buyer during a strategic review. The bank has appointed Éric Provost as group head of personal and commercial banking and appointed Sébastien Bélair as chief administration officer. The bank’s shares have fallen over…
Hedge fund trading style have a risk on US treasuries
The Federal Reserve is concerned about potential disruptions in U.S. Treasuries due to the revival of hedge fund trading style that intensified the 2020 bond market catastrophe. Hedge funds’ short positions in some Treasuries futures have reached record highs due to basis trades, which take advantage of market premiums over bond prices. Two Fed economists…
Supply deficit are the main reason on high oil prices
Brent crude rose above $93 a barrel for the first time this year, despite concerns about sluggish economic growth and increased U.S. inventories. The International Energy Agency warned that Saudi Arabia and Russia’s oil supply curbs could create a market deficit into the fourth quarter. A gloomy U.S. inventories report briefly lowered prices, while Brent…
Oil prices are possible to force the FED on rising interest rate further
US oil stockpiles are falling to a 40-year low and global crude prices are rising, according to market expert Larry McDonald. The oil stock crash reveals growing energy security concerns and increases the US’s import dependence, making it more vulnerable to supply disruptions and price volatility. The US government’s Strategist Petroleum Reserve (SPR) is being…
Rising of CPI will hurt Gold and other metals prices
Gold prices fell due to dollar and yield gains, while gold fell to a two-week low due to inflation expectations. Bullion prices remained safe after inflation reading, setting tone for Federal Reserve meeting. August inflation is expected to be 0.6%, with core inflation remaining at 0.2%. Increased inflation may prompt the Fed to raise or…
The US CPI report rose to highest in this year
US consumer prices reached their highest in over a year in August due to rising gasoline prices, but moderate inflation may prompt the Federal Reserve to hold interest rates next Wednesday. The Labor Department reported Wednesday that the consumer price index rose 0.6% last month, the highest advance since June 2022. The CPI rose 0.2%…
The Fed may raise interest rates again this year
Inflation remains above the Federal Reserve’s 2% target, and with rising oil prices and a weakening labor market, the Federal Reserve may raise interest rates later this year. Markets expect the central bank to suspend rate hikes at its September 20 policy meeting. Key Private Bank senior vice president and managing director of investment strategy…