PBOC’s Yi - Pressure from capital outflows has eased

Omkar Godbole FXStreet Contributor

Comments from the People’s Bank of China (PBOC) Deputy Governor Yi Gang crossing the wires via Bloomberg – says non-performing loans have stabilized and the pressure from capital outflows has eased as the nation’s economic recovery takes hold.

Key quotes

As the economy stabilizes, the government will further open up stock and bond markets and promote the use of the Yuan overseas

Central bank will pursue “prudent” monetary policy, balancing the need for economic stability while reducing financial leverage and controlling “asset bubbles”.

The overall risk is under control

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

EUR/USD bounces off lows, back to 1.1860

EUR/USD now manages to regain some balance, retesting the 1.1860-1.1870 band after bottoming out near 1.1830 following the US NFP data on Wednesday. The pair, in the meantime, remains on the defensive amid fresh upside traction surrounding the US Dollar.

GBP/USD rebounds to 1.3660, USD loses momentum

GBP/USD trades with decent gains in the 1.3660 region, regaining composure following the post-NFP knee-jerk toward the 1.3600 zone on Wednesday. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold stays bid, still below $5,100

Gold keeps the bid tone well in place on Wednesday, retargeting the $5,100 zone per troy ounce on the back of humble gains in the US Dollar and firm US Treasury yields across the curve. Moving forward, the yellow metal’s next test will come from the release of US CPI figures on Friday.