Brexit safe haven impacts turn global: Fed and BoJ to take note

This post discusses the increasingly global financial market “safe haven” impacts of rising Brexit uncertainties, and previews this week’s BoE, Fed and BoJ policy meetings (which will impact market tone). The main points are: Previous financial market complacency about Brexit risks (see here) has been replaced by more generalised “safe haven” asset prices impacts, as … More Brexit safe haven impacts turn global: Fed and BoJ to take note

G20 meeting: expectations of updated Plaza accord to be disappointed

Market hopes for a Plaza-type agreement at the 26-27 February G20 meeting in Shanghai 26-27 February, to help ameliorate the substantial issues facing the global economy and calm market volatility, have been growing. But I’m not expecting any really impactful policy announcements, much as I wasn’t expecting Yellen’s Congressional testimony to be a silver bullet … More G20 meeting: expectations of updated Plaza accord to be disappointed

PBOC and the Yuan: Near-term panic over but still likely end of an era

Last week’s PBOC update to their FX policy – substantially raising the CNY daily fix three times and, more importantly, apparently giving market forces a larger (if slightly opaque) role – led to substantial global FX volatility. With the benefit of a couple of days distance the bottom lines seem to be: (a) PBOC will … More PBOC and the Yuan: Near-term panic over but still likely end of an era