PBOC Governor Pan: Will continue to keep monetary policy accommodative

Dhwani Mehta FXStreet

Pan Gongsheng, Governor of the People's Bank of China (PBOC), said in a statement on Wednesday, the Chinese central bank “will continue to keep monetary policy accommodative.”

Additional quotes

China's economy continues to gain momentum.

CPI is gradually bottoming out in China.

CPI November drop due to food prices, especially the fall in pork.

China should focus on forming new growth drivers.

High quality, sustainable growth in China more important

Confident China will enjoy sustainable growth in 2024.

Will make it easier for foreign financial institutions to do business in China.

Related reads

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

AUD/USD picks up bids above 0.7100 after RBA-speak

AUD/USD picks up bids above 0.7100 in the Asian session on Tuesday, following hawkish comments from RBA Assistant Governor Sarah Hunter and Governor Michele Bullock. However, escalating tensions in the Middle East and the Fed's hawkish outlook remain supportive of the bullish US Dollar undertone, which could limit the pair. The crucial Trump-Xi summit is later this week and remains in focus.

USD/JPY holds small gains near 157.50 as JPY intervention risks loom

USD/JPY posts modest gains while trading near 157.50 in the Asian session on Tuesday as intervention fears help limit losses for the Japanese Yen. However, the BoJ's dovish rate hike to a 31-year high keeps JPY bulls on the back foot. Meanwhile, the US Dollar retains a bullish undertone amid the Fed's hawkish outlook and escalating Middle East tensions, providing tailwinds for the pair.

Gold recedes a tad; still above $4,300

Gold extends its decline for a second straight session, slipping below the $4,300 mark per troy ounce, just to regain some composure afterwards. The precious metal remains under pressure as expectations that the Fed will keep interest rates higher for longer continue to support US Treasury yields and the US Dollar.

Trump meets Xi: Why markets are watching this summit so closely

US President Donald Trump and Chinese President Xi Jinping are set to meet in Washington on Thursday for a summit closely watched by markets. The meeting could determine whether the world's two largest economies extend their truce or enter a new period of uncertainty.

Energy and risk markets remain in the driver’s seat

US stock markets rallied up 2.26% (Nasdaq) yesterday with AI/tech names leading the advance. The Nasdaq even tested the all-time high reached early June. The likes of the S&P 500 and EuroStoxx50 recovered up to 1.5%. Positive risk vibes and lower energy prices supported consolidation on bond markets following the past month’s heavy losses. European yield curves bull steepened.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.