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16 Dec 2014
Loss of economic growth momentum in China remains a concern – BTMU
FXStreet (Barcelona) - Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ, notes that slowing growth in developing economies is a growing concern as it can weigh on emerging market currencies.
Key Quotes
“The sharp sell-off in the rouble yesterday was accompanied by a broad-based decline in emerging market currencies. The prospect of the Fed displaying a less dovish outlook for monetary policy and investor concerns over slowing growth in developing economies especially in China have been weighing on emerging market currencies. Those concerns have been reinforced further overnight by the release of the weaker than expected HSBC China manufacturing PMI survey which declined by 0.5 point to 49.5 in December reaching its lowest level since May 2014.”
Key Quotes
“The sharp sell-off in the rouble yesterday was accompanied by a broad-based decline in emerging market currencies. The prospect of the Fed displaying a less dovish outlook for monetary policy and investor concerns over slowing growth in developing economies especially in China have been weighing on emerging market currencies. Those concerns have been reinforced further overnight by the release of the weaker than expected HSBC China manufacturing PMI survey which declined by 0.5 point to 49.5 in December reaching its lowest level since May 2014.”