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25 Feb 2014
European open: Asian volatility subdued despite RMB fixing lower
FXStreet (London) - Beijing lowered the RMB fix for the sixth-straight day overnight, down to CNY6.1184. The RMB depreciation could be a move ahead of a widening of trading bands. It comes following a conference held on 17-18 February, attended by PBoC governor Hu Xiaolian at which officials stressed the importance of an orderly expansion of the USD-RMB fixing band in 2014.
Despite yuan depreciation, there was little volatility in the Asian session. USD/JPY declined to JPY102.2700 down 0.23 percent. AUD/USD declined 0.27 percent to USD0.9011.
The Nikkei gained 1.44 percent to 15,051.60. The Hang Seng fell 0.32 percent to 22,317.20.
The second reading of fourth quarter German GDP was the main release of the morning, holding consensus expectations, up 0.4 percent quarter-on-quarter.
In the UK, January BBA loans for house purchase and February CBI reported sales are set to be released. Mortgage approvals are expected to see a gain to 47.9k after 46.5k in December.
In the US consumer confidence and house price data will help give an indication to household optimism. February consumer confidence is expected to see a slight drop to 79.5 from 80.7 in January. Consensus expectations are for a slowing of house price rises, at 13.3 percent versus 13.7 percent.
Despite yuan depreciation, there was little volatility in the Asian session. USD/JPY declined to JPY102.2700 down 0.23 percent. AUD/USD declined 0.27 percent to USD0.9011.
The Nikkei gained 1.44 percent to 15,051.60. The Hang Seng fell 0.32 percent to 22,317.20.
The second reading of fourth quarter German GDP was the main release of the morning, holding consensus expectations, up 0.4 percent quarter-on-quarter.
In the UK, January BBA loans for house purchase and February CBI reported sales are set to be released. Mortgage approvals are expected to see a gain to 47.9k after 46.5k in December.
In the US consumer confidence and house price data will help give an indication to household optimism. February consumer confidence is expected to see a slight drop to 79.5 from 80.7 in January. Consensus expectations are for a slowing of house price rises, at 13.3 percent versus 13.7 percent.