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19 Feb 2016
G20 Shanghai preview - TDS
Analysts at TD Securities noted the meeting of finance ministers and Central Bank governors this weekend in Shanghai.
Key Quotes:
"While we think a formal G20 currency intervention is unlikely, odds are rising that some form of statement is released acknowledging currency misalignment and stating that countries are "monitoring exchange rate developments".
We're already seeing more vocal questioning of the adjustment of currency markets from the Fed’s Yellen, BoJ’s Kuroda, PBoC’s Zhou, and RBA Deputy Governors, as well as action from Banxico & Bank of Korea that is consistent with a weakening of the USD against some--but not all--currencies, which could boost commodity prices."
Key Quotes:
"While we think a formal G20 currency intervention is unlikely, odds are rising that some form of statement is released acknowledging currency misalignment and stating that countries are "monitoring exchange rate developments".
We're already seeing more vocal questioning of the adjustment of currency markets from the Fed’s Yellen, BoJ’s Kuroda, PBoC’s Zhou, and RBA Deputy Governors, as well as action from Banxico & Bank of Korea that is consistent with a weakening of the USD against some--but not all--currencies, which could boost commodity prices."