Author Topic: currency news After Trump’s Election Victory  (Read 610 times)

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Offline thaiga

currency news After Trump’s Election Victory
« on: November 12, 2016, 12:15:33 PM »
Well it certainly rocked the boat, after the news of trumps election win, On Friday the Malaysian currency dropped like a brick to 7.8 baht - making it it's lowest point in 30 years which will effect thai traders at the border. Thai Rath reports also Gold took a huge hit a one baht weight fell three hundred baht from 21,400 to 21,100 on Friday.

Down mexico way, the mexican peso was the first victim of Donald Trump’s victory, plunging 14% within a few hours of polls closing, reaching an all-time low of 21 pesos to the US dollar in the early hours of Wednesday morning. But if Trump closes the door to Mexican imports it could have a major effect on their economy

The good news The dollar was trading higher against the baht on Saturday and the good old British pound was up around a baht
our currency calculator now showing @44.32. today.

Anyone who goes to a psychiatrist should have his head examined.
 

Offline thaiga

Bonds bloodied as Trump spending plans spur dollar

Routs in global bonds and emerging markets intensified, while the dollar climbed with base metals as investors positioned for the wave of fiscal stimulus that Donald Trump has pledged to unleash.

The yield on 30-year Treasuries rose to the highest since January, with last week’s record debt selloff bleeding into Monday trading and weighing on credit markets.

The Bloomberg Dollar Spot Index advanced to the highest since February as the US currency strengthened versus almost all its major counterparts. European shares pared earlier gains and stocks in developing nations sank to a four-month low. Copper headed for the highest close in 16-months and oil fell with gold. US equity-index futures advanced.

Mr Trump’s election as US president is sending shock waves through global markets on speculation his pledge to boost infrastructure spending will boost growth and inflation and trigger faster hikes in US interest-rate.

About $1.2 trillion was wiped off the value of bonds worldwide last week as equities added about $1 trillion and base metals soared by the most in four years. Emerging markets are being hit by an exodus of capital amid concern Mr Trump will also implement more protectionist trade policies.

"Trump has introduced so much uncertainty -- around the fiscal outlook, the outlook for foreign demand for Treasuries given his protectionism and his views on China, uncertainty around the outlook for the Fed,” said John Davies, an interest-rate strategist at Standard Chartered Plc in London, which adjusted its forecast for 10-year Treasuries yields to 3% in the end of 2017 from below 2% previously. “There’s an uncertainty premium, rather than just expectations of much more Fed tightening,” being priced into Treasuries, he said. “We think there’s room for this to continue.”

Bonds

Ten-year US Treasury yields increased five basis points to 2.205% as of 8.44am New York time, the highest since early January. They surged 37 basis points last week, the most in three years, amid speculation Mr Trump’s plans to boost spending and cut taxes will widen the budget deficit and stoke inflation. The 30-year yield increased as much as 13 basis points to 3.06%.

Federal Reserve vice chairman Stanley Fischer said Friday that the central bank was close to achieving its goals of maximum employment and price stability, strengthening the case for an interest-rate increase. Pacific Investment Management Co says long-term yields may have bottomed out and predicts three rate hikes by the end of next year. Futures prices indicate an 84% chance of a tightening at the December policy meeting.

“Yields will continue to rise over the next year,” said Hiroki Shimazu, an economist and strategist at the Japanese unit of MCP Asset Management in Tokyo. “The fundamentals are very strong, particularly in the US. There are some signs of higher inflation pressures. Trump is pushing this phenomenon.”

Benchmark German 10-year bonds headed for their longest losing streak since May, and those on similar-maturity Italian debt climbed to the highest since July 2015. UK 10-year gilts extended their slide to a sixth day, pushing yields to a five-month high. Portuguese yields rose to 3.58%, the highest since June.

Since the Nov 8 election, developing-nation local-currency bonds tumbled 7.3% through Nov 11, the biggest three-day slump since October 2008. The decline cut the bonds’ return this year to 8.5%.

Government bonds also extended losses across the Asia-Pacific region. Thailand’s 10-year yield jumped by the most since May after foreign investors pulled a record 27 billion baht from the nation’s bond market on Friday, while similar-maturity debt in China dropped for a seventh day, the longest losing streak in three years.

The cost of insuring corporate debt against default climbed to the highest since July 7. The Markit iTraxx Europe Index of credit-default swaps on investment-grade companies rose two basis points to 80 basis points. A gauge of swaps on junk-rated businesses rose four basis points to 354 basis points.

Yields on investment-grade corporate bonds in euros rose to 0.91% on Friday, the highest since June 30, according to Bloomberg Barclays index data.

Currencies

The Bloomberg Dollar Spot Index jumped 0.6%, rising for a fourth-straight day, and set for the largest gain over such a period since 2009.

The euro fell versus the greenback for a sixth day, its longest run of declines in six months, dropping 0.8% to $1.0774, a level last seen in January. The yen sank 1.1% and touched its weakest level since early June. Japan’s economy expanded by an annualised 2.2% in the last quarter, data showed Monday, exceeding the 0.8% expansion forecast in a Bloomberg survey and easing pressure on the Bank of Japan to add stimulus.

“The dollar is strengthening along with the rise in US yields, reflecting expectations for economic expansion from fiscal spending,” said Yunosuke Ikeda, Nomura Holdings Inc.’s head of Japan foreign-exchange research in Tokyo. “Japan’s 2% growth can be used as a reason for the BoJ not lowering interest rates for a while.”

The pound fell 0.5% to $1.2536, almost wiping out last week’s 0.6% gain.

lots more here Bangkokpost
Anyone who goes to a psychiatrist should have his head examined.
 

Offline thaiga

Thai currency to depreciate against US dollar this year

The Thai National Shippers’ Council believes that the Thai currency could touch 37 baht per US dollar by the end of this year as a result of Donald Trump’s economic policies.

Nopporn Thepsithar, the chairperson of the Thai National Shippers’ Council (TNSC), said this weekend that the monetary and fiscal policies of President Trump are the start of economic changes in the United States, pointing out that there will be more investments that will result in large capital inflows into the US.

Consequently, the US dollar will appreciate against other currencies including the Thai baht. The TNSC chief is convinced that the value of the Thai baht will stand around 36 baht per US dollar in mid-2017 and could potentially drop to 37 baht per dollar at year’s end. He was however optimistic about the situation, saying a devaluation of the Thai currency would boost the country’s exports.

Nopporn went on to say that the agency will keep a watchful eye on Trump’s policies and the economic status of the US

NNT
Anyone who goes to a psychiatrist should have his head examined.
 

 



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