Saxo Bank Releases New Asia Focus Video
Released on: December 02, 2011, 1:32 pm
Author: Saxo Bank
Saxo Bank, the online trading specialist, has released a new
Asia Focus Video which features Andrew Robinson, Forex Analyst for Saxo
Capital Markets in Singapore, analysing the People's Bank of China's
decision to lower its reserve requirement ratio, whether it's a taste
of more cuts to come and how much it is a clear signal that the
world's second-largest economy is really slowing after all.
The unexpected People's Bank of China's announcement that it will lower its
reserve requirement ratio on December 5, representing the first cut in three years,
initially surprised markets and started a risk-on sentiment, particularly in
equities and incited market hunger for more monetary easing.
As such, reserve requirement ratio cuts rarely come in isolation and more are likely
soon, probably as early as next month, confirmed Andrew Robinson, FX Analyst, Saxo
Capital Markets. He said the timing of this easing has to do with the flow of data
of late which has pointed to a slowing in the economy and that it was
acknowledgement of this situation. Furthermore it pre-empted the latest purchasing
manager index data which confirmed a contraction scenario for the economy.
Commenting on the recent data from China, Andrew said: "Last month's data was
looking particularly soft and the expectations for this month are not particularly
encouraging. If we look at the data that's been coming out recently, it's
certainly suggesting that the market is slowing down.
"I think this is a pre-emptive move by the PBOC and they're looking to continue it
and build the economy."
The focus in the coming days will now shift to inflation data with more declines in
the consumer price index and an even greater drop in the purchasing prices index
seen. Combined, this confirmation of a softening in price pressure effectively
removes a hurdle the People's Bank of China was facing in terms of the freedom to
continue to ease monetary policy.
The video can be viewed at http://www.tradingfloor.com/blogs/macro-ad-hoc/more-chinese-easing-as-price-pressure-abates-removing-pboc-hurdle-1126984016,
with many other forex videos available on the Saxo
About Saxo Bank
Saxo Bank is a leading online trading and investment specialist, assisting clients in forex trading, CFDs, Stocks, Futures, Options and other derivatives The three specialised and fully integrated trading platforms; the browser-based SaxoWebTrader, the downloadable SaxoTrader and the SaxoMobileTrader application are available in over 20 languages. Saxo Asset Management accommodates high-net worth private clients and institutional investors. In 2011 Saxo Bank continued the diversification of its business and launched Saxo Privatbank. The Saxo Bank Group is headquartered in Copenhagen with offices throughout Europe, Asia, Middle East, Latin America and Australia.
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