Cross-Asset Liquidity Strategist, CrossBorder Capital

Michael J. Howell

Cross-Asset Liquidity Strategist

Implementing Research Using Alt Data & AI

CrossBorder Capital

CrossBorder Capital is a London-based independent investment advisory firm. Founded in 1996, it exploits a gap in the investment arena by focusing on Central bank liquidity. 

It specialises in the monitoring and analysis of global liquidity flows - an important determinant of asset prices, from currencies through to bonds, equities and real estate.

CrossBorder Capital implements its investment strategy and currently manages over US$ 350m.


FX & Rates

<ul>
<li>We disagree that the Chinese Yuan will slump further or formally devalue. We expect a modest additional 2-5% slide this year.</li>
<li>We foresee several key changes that will culminate in the formation of a de facto Yuan-bloc of Asian currencies. These will ultimately ‘float away’ from the US dollar and Euro. </li>
<li>China is providing leadership of this group and is already embarking on another round of domestic demand stimulus. Could the next bull market start in Beijing?</li>
</ul>The most important ‘price’ in the…


We disagree that the Chinese Yuan will slump further or formally devalue. We expect a modest additional 2-5% slide this year.
We foresee several key changes that will culminate in the formation of a de facto Yuan-bloc of Asian currencies. These will ultimately ‘float away’ from the US dollar and Euro. 
China is providing leadership of this group and is already embarking on another round of domestic demand stimulus. Could the next bull market start in Beijing?
The most important ‘price’ in the…

The Most Important Price In The World … Possibly?

Chief Economist & Political Strategist, CrossASEAN Research

Prasenjit K. Basu

Chief Economist & Political Strategist

REAL-Economics.com

Thematic (Sector/Industry)

The renewed RMB weakness this week demonstrates that it will not be possible for China to run expansionary monetary policy without threatening financial stability. China's strategy of easing liquidity conditions (through 150bp of RRR cuts in the past 3 months) is causing substantial capital flight -- but the PBOC is masking this by selling US dollars in the forward rather than spot market (akin to what the BoT and BoK did in 1997). This is not yet 1997 Redux. But the threatened imposition of US…

The renewed RMB weakness this week demonstrates that it will not be possible for China to run expansionary monetary policy without threatening financial stability. China's strategy of easing liquidity conditions (through 150bp of RRR cuts in the past 3 months) is causing substantial capital flight -- but the PBOC is masking this by selling US dollars in the forward rather than spot market (akin to what the BoT and BoK did in 1997). This is not yet 1997 Redux. But the threatened imposition of US…

China: Barely Staying Afloat with New Money and Fiddled Data

FX Strategist

Greg Gibbs

Fundamental analysis of topical themes in FX

Amplifying Global FX Capital

Amplifying Global FX Capital was founded in 2015 and is fully owned by Greg Gibbs. It is a registered company both in Australia and Colorado, USA and is a licensed in Australia to provide financial services.

We are producing a regular trading view orientated macroeconomic analysis of topical themes in global financial markets, with a particular focus on foreign exchange. We invite you to view an “executive summary” of these reports in “AmpGFX Reports” under our “Research” menu.

These reports are drawn from the analysis of Greg Gibbs and inform the capital management he undertakes on behalf of the company. The trading performance is posted periodically on our website. We aim to build our company into both a research and capital management business. We are currently in the planning phase for managing capital for wholesale customers.

Greg Gibbs has spent his working life of more than 26 years in financial markets, beginning in 1989 at the Reserve Bank of Australia, after completing a Bachelor of Economics Degree (Honours) at the Australian National University. He has been a CFA Charterholder since 2005. He has worked in Sydney, Singapore, New York and London for major global banks and presented on foreign exchange markets to major financial institutions and companies around the world, and maintained a high profile in the financial media.

Before Amplifying Global FX Capital, Greg was the Head of Asia Pacific Market Strategy at the Royal Bank of Scotland based Singapore. He now resides in Breckenridge Colorado.

GBP has made gains since Friday and may be placed to extend these in coming weeks after recent stronger than expected UK economic reports, upbeat comments from BoE Governor Carney, and a political win for PM May that should help ease Brexit uncertainty in the near term. Trade tensions remain fraught between the US and China and recent weakness in global export confidence may keep Asian currencies under pressure.  China is courting the EU in trade relations to counter the risks of a US trade war.  The EU may find it can ease its trade risks while the US and China slug it out.

GBP has made gains since Friday and may be placed to extend these in coming weeks after recent stronger than expected UK economic reports, upbeat comments from BoE Governor Carney, and a political win for PM May that should help ease Brexit uncertainty in the near term. Trade tensions remain fraught between the US and China and recent weakness in global export confidence may keep Asian currencies under pressure.  China is courting the EU in trade relations to counter the risks of a US trade war.  The EU may find it can ease its trade risks while the US and China slug it out. 

Recent news reports suggest that the Trump administration may be looking to cool its trade rhetoric towards Europe and NAFTA, while trade tensions with China remain high and may increase further.  European automaker share prices recovered significantly from beaten-down levels, while the Chinese share market and Asian equities more generally remain relatively weak.  This may tend to support the EUR and CAD while keeping Asian currencies under pressure.  The Bank of Canada appears set to proceed with its fourth hike this cycle next week and its labor report on Friday should remain upbeat.

Recent news reports suggest that the Trump administration may be looking to cool its trade rhetoric towards Europe and NAFTA, while trade tensions with China remain high and may increase further.  European automaker share prices recovered significantly from beaten-down levels, while the Chinese share market and Asian equities more generally remain relatively weak.  This may tend to support the EUR and CAD while keeping Asian currencies under pressure.  The Bank of Canada appears set to proceed with its fourth hike this cycle next week and its labor report on Friday should remain upbeat.

Shifting Trump Trade Rhetoric May Support EUR and CAD Against Asian Currencies

The fall in gold may make sense against the stronger USD.  However, it is odd to see it underperform other G10 currencies in an environment of higher global market volatility and increasing inflation pressure in the US.  The steep fall in CNY may reflect a new policy era under a new central bank governor, allowing currency flexibility to act as a shock absorber for the economy. It hasn't led to capital flight from China, and this may be helping limit contagion to global markets.  However, weak Chinese currency and equities are spreading more clearly to Asian markets. The threat of tariffs has not significantly dampened activity indicators in Asia or globally.  US surveys are still reporting rude health.  Inflation risks are rising in the US and are likely to keep the Fed raising rates at a steady pace.  The USD may remain relatively strong against most other currencies while it continues to raise rates.  Negative feedback from global market volatility and tariffs to US markets and economic confidence may not be sufficient yet to halt the USD’s advance.

The fall in gold may make sense against the stronger USD.  However, it is odd to see it underperform other G10 currencies in an environment of higher global market volatility and increasing inflation pressure in the US.  The steep fall in CNY may reflect a new policy era under a new central bank governor, allowing currency flexibility to act as a shock absorber for the economy. It hasn't led to capital flight from China, and this may be helping limit contagion to global markets.  However, weak Chinese currency and equities are spreading more clearly to Asian markets. The threat of tariffs has not significantly dampened activity indicators in Asia or globally.  US surveys are still reporting rude health.  Inflation risks are rising in the US and are likely to keep the Fed raising rates at a steady pace.  The USD may remain relatively strong against most other currencies while it continues to raise rates.  Negative feedback from global market volatility and tariffs to US markets and economic confidence may not be sufficient yet to halt the USD’s advance.

Gold Confounds, A New Era of CNY Flexibility, Inflation Pressure Builds in the USA

China

The Chinese renminbi (yuan) is the official currency of The People's Republic of China. 

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CNY (USDCNY CURNCY)

The Most Important Price In The World … Possibly?

We disagree that the Chinese Yuan will slump further or formally devalue. We expect a modest additional 2-5% slide this year. We foresee several...

Michael J. Howell

China: Barely Staying Afloat with New Money and Fiddled Data

The renewed RMB weakness this week demonstrates that it will not be possible for China to run expansionary monetary policy without threatening...

Prasenjit K. Basu

GBP May Be in a Sweet Spot

GBP has made gains since Friday and may be placed to extend these in coming weeks after recent stronger than expected UK economic reports, upbeat...

Greg Gibbs

Shifting Trump Trade Rhetoric May Support EUR and CAD Against Asian Currencies

Recent news reports suggest that the Trump administration may be looking to cool its trade rhetoric towards Europe and NAFTA, while trade tensions...

Greg Gibbs

Gold Confounds, A New Era of CNY Flexibility, Inflation Pressure Builds in the USA

The fall in gold may make sense against the stronger USD. However, it is odd to see it underperform other G10 currencies in an environment of...

Greg Gibbs

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)