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. See our updated Privacy Policy here.

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
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/hftCEho1lM
  • Gold price action is primed for volatility next week with the Fed decision on deck. How real yields and the US Dollar react to fresh guidance from Fed officials will be key for gold outlook. Get your weekly gold forecast from @RichDvorakFX here: https://t.co/MzaIl7tPmZ
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/rFlQtyQS81
  • Canadian Dollar snapped a three-week losing streak after USD/CAD stalled at key technical resistance. Get your CAD weekly forecast from @MBForex here: https://t.co/BPHuKecwnz https://t.co/73OmuCKfU9
  • Forex quotes reflect the price of different currencies at any point in time. Since a trader’s profit or loss is determined by movements in price, it is essential to develop a sound understanding of how to read currency pairs. Learn how to read quotes here: https://t.co/CNtqrKWDBY https://t.co/KzhQnGiLyt
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/cuneuJNZlH
  • Get your snapshot update of the of top level exchanges and key index performance from around the globe here: https://t.co/d8Re5anlG5 https://t.co/danCiP5vqK
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/JhYoQ7I19K
  • The Nasdaq 100 index is aiming to breach a key resistance level at 14,950 for a second time. A successful attempt may open the door to further gains, although the MACD indicator flags signs of weakness. Get your equities forecast from @margaretyjy here: https://t.co/BEYupi32qB https://t.co/PWeXE8tZVY
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/t34kotPE8R
PBOC Governor Zhou Sounds Blunt Financial Risk Warning

PBOC Governor Zhou Sounds Blunt Financial Risk Warning

David Cottle, Analyst

Talking Points:

  • The PBOC Governor fretted about high leverage and illegal behavior
  • He has done so before in recent years
  • But he does seem to be getting more forthright about the need for reform

We’re well into 2016’s final quarter now, but what will its end bring? The DailyFX Technical and Fundamental Forecasts are here.

China’s financial system is at increasing risk because of high leverage and needs deeper reforms according to People’s Bank of China Governor Zhou Xiaochuan.

An excerpt from his contribution to the Chinese Communist Party’s “Nineteenth Congress Counseling Book” appeared on the central bank’s website over the weekend. In it, Zhou highlighted “hidden, complex, contagious and hazardous” financial risks.

The PBOC chief broke these down into three categories. The first is at the macro level, where he said debt was too high. The second is at the micro point, with bad loans and delinquencies rising. The third was a growing risk from shadow banking and regulation avoidance. Zhou warned that structural imbalances were clear and illegal behaviour widespread.

Zhou is 69 years old and expected to retire shortly after fifteen transformative years at the helm of China’s monetary authority. His blunt warning is the latest in a series of jeremiads and speaks to one of the key problems bedevilling Chinese economic policy making.

Although impressive by Western standards, Chinese growth is now down to multi-decade lows and Beijing needs to keep the economy humming at current levels at least while reducing often-horrendous corporate debt. Zhou’s warning hints that a huge amount still needs to be done to make the system safer. He suggested that broad reform must continue and that China’s financial markets should be opened up to make them more efficient.

For financial markets, it remains to be seen which way China will jump. If the war on debt causes growth to slow still further, then intuitively commodity currencies such as the Australian Dollar may face a headwind. However, if policy action is seen as being insufficient and Chinese debt levels become viewed as in any sense out of control then that could present the sort of global market difficulties we saw at the start of 2016. Back then worries about stock overvaluation in the face of slowing growth and rising debt caused world markets to eschew risk assets.

--- Written by David Cottle, DailyFX Research

Contact and follow David on Twitter:@DavidCottleFX

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

DISCLOSURES