IMF announces inclusion of the Chinese Renminbi to the SDR basket. There will be a new forex dynamic as funds re-allocate their foreign reserves.
Hong Kong Monetary Authority continues to intervene in currency markets in April to hold 7.75 line for USDHKD. We explain the move and link to related reports.
USDHKD price action is hugging 7.75 very closely. It is an outer limit of Hong Hong’s currency peg to the USD under the Linked Exchange Rate System. The pair made its deepest penetration to 7.74823 yesterday.
USDHKD approaches 7.75 on LERS after 3 months. Coincides with DXY due for correction, record Rouble weakness and high reference exchange rate fix by PBOC.
Multi award-winning HantecFX looks at impact of Occupy Central on Hong Kong Dollar, state of the economy as well as ‘Golden Week’ shopping activity.
Russians buy HKD to beat US sanctions challenge HKMA which has to defend currency peg. Explains why USDHKD did not move with Dollar rally.
7.75 of USDHKD continues to be tested. This post links together some others I have wrote about on this topic including HKMA intervention. With excerpts from Zerohedge and Sovereign Man.