January 2022 FX Commentary: Rising US interest rates fuel the dollar’s ascension

December figures for US GDP growth (+4.9% YoY annualized in Q3), unemployment (3.9%), and inflation (7.0%) caused the Fed to plan earlier rate hikes than initially expected.

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Why companies should pay their Chinese suppliers in RMB (instead of USD)

The development of the offshore RMB (CNH) and the subsequent roll-out of USDCNH Futures contracts have been a game changer for non-Chinese companies doing business with suppliers based in mainland China. As a result, an increasing number of companies have already switched their payment currency from USD to RMB.

Omicron triggers higher volatility and equity profit taking: November 2021 Monthly Market Commentary

Global markets have reacted swiftly to the new Omicron variant, with an equity market sell-off in end-November. Nonetheless, economic growth remains strong around the globe amid central banks’ accommodating monetary policies, which we believe will support equity markets as countries and businesses adapt to a post-Covid world.

December 2021 FX Commentary: Omicron triggers higher volatility and flight to safe haven currencies

Currency market participants have reacted swiftly to the new Omicron variant As a result, currency volatility has surged c 60 since September (EURUSD volatility up from 4 to 6 35 Meanwhile, exporters and importers of European goods and services have started to hedge their currency exposure for 2022 especially EUR, RMB, GBP and AUD, which also contributed to the FX volatility.

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SME Series: Supply Chain Uncertainties?

2 Key Features to look for in a Currency Risk Hedging Solution: Your supply chains may be disrupted, but you can still effectively mitigate your cross border currency risk without uncertainty.

Fed to start tightening its monetary policy: October 2021 Monthly Market Commentary

As expected, the US Federal Reserve decided to start reducing its monthly bond purchasing program by US$15bn, which should trigger a moderate rise in long-term yields. On the other hand, other major central banks are expected to keep their target rates unchanged till the end of next year. We note global economic activity has been improving. In the US, the services Purchasing Managers’ Index (PMI) surprised to the upside, reaching a record-high level of 66.7 in October. In China, exports surged 28.1% YoY to US$305.7bn in September. So far, Evergrande’s partial default has been contained by the Chinese regulator and the PBoC and we believe a widespread contagion to other sectors of the economy is unlikely. Strong global demand has been driving commodity prices up, with oil prices rising another 10% in October and 70% in 2021, while natural gas prices doubled in 2021. On the pandemic front, we note the Delta variant has only had a moderate impact on global economic growth, which contributed to improved market sentiment.