Hong Kong exhchange coutinued weak, last night fell below 7.8.
The US Federal Reserve will hold a two-day meeting on interest rates, the market is almost certain that the authorities will announce a rate hike, after the Hong Kong and US interest rates continued to widen, the Hong Kong exchange continued weak, last night fell below 7.8, last January For the first time.
Hong Kong last night saw 7.8006, that is biased towards the weak side, is now in the fight against the mark, reported 7.7982. In fact, with the US interest rate hike and the widening gap between Hong Kong and Hong Kong, the gap between the one-month HIBOR and 1-month LIBOR has reached 0.76%.
If the United States really raise interest rates, LIBOR will follow, then buy the dollar to sell Hong Kong dollar's carryout activities or more active, Hong Kong has the opportunity to further pressure. However, the Hong Kong pool of funds is still stable. According to the latest data, the balance of the banking system in Hong Kong is still 259.552 billion yuan, which has remained similar in the second half of last year. This shows that there is no pressure on capital in Hong Kong.
According to "Bloomberg" comprehensive interest rate futures data show that the market temporarily estimated that the Fed announced the rate hike this month as high as 100%. However, it is more noteworthy that the Fed will take this opportunity to announce more details of the table, or around the global financial market liquidity.
in general that would mean the money flowing out of HK, that is in line with current market correction.
Surprised the USD hasn't gone up more against the regional emerging market currencies. It's at pre elections levels which is like 2 rate hikes ago.
Seems like the market is giving a big donald trump discount.
It seem that it is not a good new for Hong Kong people like us. Should I change all my HKD into other currency? I am thinking about it. I thought I can turn my HKD into BTC or ETH, but it seem that it is very risky! I may go to buy some stock instead. @kaiching77, what will you do?
good post!upvote
Thank you
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