4 days ago
Forex update: Ruble brushes off new US sanctions on Russia
Forex markets barely budged on the widely anticipated 'muscular' new sanctions on Russia - including on its Sovereign bond market.
5 days ago
"We believe that the SNB sold CHF 583 million worth of FX reserves in February. A small amount compared to a total of CHF 934 billion. However, it appears that the SNB shifted reserves in March as well. These sales should not be seen as a tightening of monetary policy but as an attempt to defuse the tensions with the US in light of the Treasury currency manipulator label"
"Nevertheless, we believe this move introduces more two-way risk in EURCHF from here, keeping FX vols supported"
6 days ago
The Biden Administration is likely to include Taiwan in its currency manipulator list. Impairing trade with the Taiwanese nation does not seem like a great idea though, as the Taiwanese laughed that if that's what the US aimed to do, they could simply stop selling them their semiconductors. The Taiwanese dollar fell 2% since the early March peak of 28.5 per US dollar, falling to 28 for most of the first quarter. Rising US treasury yields is also a pressure on the currency, as investments tend to be directed overseas.