Chinese economy is at the focus, as the two world huge economies are in a war. Yes, it's called the trade war. Trade war and Brexit news are the most important news for all who are interested in money and business.
Today's News:
According to analysts at Standard Chartered, escalating trade tensions weighed on market sentiment even as a soft DXY supported the Chinese yuan (CNY) for most of September.
The US and China imposed additional tariffs on each other’s goods starting from 1 September. While talks between the two sides continue on the table, the date for high-level trade talks in October as was said and arranged was not confirmed until the last week of September. Against this backdrop, non-FDI capital outflows picked up to USD 19.7bn in September from a modest USD 11.5bn in August, according to the global estimate.
FX assets held by the People’s Bank of China (PBoC) saw a small decline of USD 0.1bn, indicating that overall cross-border flows remained balanced. The merchandise trade surplus widened to USD 39.6bn in September after narrowing for two months, leading to a larger Q3-2019 surplus relative to Q2. Meanwhile, we estimate that the September services trade deficit shrank to USD 22.9bn.
According to FXS Forex news as they calculated that total net capital outflows (including net FDI inflows of USD 2.8bn) edged up by USD 7.3bn to USD 16.9bn in September / still modest compared with June (USD 31.8bn) and July (USD 20.3bn).
The latest data from the State Administration of Foreign Exchange (SAFE) shows that net FX sales picked up in September and the willingness to convert FX receipts into CNY declined.
SAFE(State Administration of Foreign Exchange) recently announced new measures to facilitate cross-border trade and investment, including simplifying administrative procedures for FX payment and receipt and removing some payment restrictions on the capital account. The measures aim to improve the business environment and attract foreign capital.