News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bullish
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • 🇳🇱 Unemployment Rate (DEC) Actual: 3.9% Previous: 4% https://www.dailyfx.com/economic-calendar#2021-01-21
  • 🇳🇱 Consumer Confidence (JAN) Actual: -19 Previous: -20.0 https://www.dailyfx.com/economic-calendar#2021-01-21
  • 🇳🇱 Unemployment Rate (DEC) Actual: 3.9 Previous: 4% https://www.dailyfx.com/economic-calendar#2021-01-21
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in Wall Street are at opposite extremes with 70.99%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/e6YUDJEZ1A
  • Germany's Covid death toll rises above 50,000 - BBG
  • Forex Update: As of 05:00, these are your best and worst performers based on the London trading schedule: 🇳🇿NZD: 0.49% 🇦🇺AUD: 0.33% 🇬🇧GBP: 0.21% 🇯🇵JPY: 0.13% 🇨🇦CAD: 0.13% 🇨🇭CHF: 0.10% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/1UDJQe7C0f
  • Heads Up:🇳🇱 Consumer Confidence (JAN) due at 05:30 GMT (15min) Previous: -20.0 https://www.dailyfx.com/economic-calendar#2021-01-21
  • Heads Up:🇳🇱 Unemployment Rate (DEC) due at 05:30 GMT (15min) Previous: 4% https://www.dailyfx.com/economic-calendar#2021-01-21
  • Indices Update: As of 05:00, these are your best and worst performers based on the London trading schedule: FTSE 100: 0.59% France 40: 0.41% US 500: 0.39% Germany 30: 0.39% Wall Street: 0.25% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/AO1cjIg0PC
  • Want to make trading decisions with confidence? Download you free guide to avoid hesitations in your trading decisions.https://t.co/00I3lH90OD #DailyFXGuides https://t.co/PzNI79hehK
Chinese Officials Report Capital Outflows Eased Into End of 2015

Chinese Officials Report Capital Outflows Eased Into End of 2015

Daniel Dubrovsky, Analyst

Talking Points:

  • SAFE reported capital outflows of $164.4 billion in the fourth quarter versus $196.1 billion in third quarter of 2015
  • The PBOC has fought capital outflows for some time, seemingly intensified after the new Yuan fixing rate policy
  • China concerns have contributed to risk aversion, the dominant theme in the markets since the turn of the new year

Losing Money Trading the Australian and New Zealand Dollars? This might be why.

China’s State Administration of Foreign Exchange published a statement regarding capital flows. According to Reuters, SAFE reported that Chinese banks sold $164.4 billion in FX reserves in the end of 2015 versus $196.1 billion in the third quarter. This makes for a 61 percent (QoQ) contraction in capital flight.

The administration reported that cross-border capital flow risks are controllable and promised to guard against any abnormalities in these flows. The State Administration of Foreign Exchange also said that Chinese forex reserves remain ample and that ups and downs in FX purchases are becoming the new normal. SAFE added that there are now new measures to limit forex reserve buying with the policy for individual FX purchases remaining largely unchanged.

As can be seen on the first chart below created by Currency Strategist Ilya Spivak, the People’s Bank of China has been fighting Yuan depreciation since mid-2014 by spending FX reserves. The adjustment of the Yuan fixing rate policy back in August 2015 amplified capital flight. Further signs of slowdown in capital outflows from China may offer a sigh of relief to the current dominant theme in the markets.

Chinese concerns have contributed to risk aversion, and it has been the predominant theme in the markets since 2016 began. The sentiment-linked Australian and New Zealand Dollars have been some of the worst performers against the greenback three weeks into January. S&P 500 and Nikkei 225 futures have been following the commodity-linked currencies lower in the same risk-off environment. Simultaneously, the anti-risk Japanese Yen has been the best performing major versus the US Dollar thus far in January.

Chinese Officials Report Capital Outflows Eased Into End of 2015

Chart created by Currency Strategist Ilya Spivak

Chinese Officials Report Capital Outflows Eased Into End of 2015

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES