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February's most important data release - and its not US payrolls
Fears surrounding the Chinese outlook and increasing capital outflows have been major contributors to deteriorating risk appetite so far in 2016. The Bank of Japan move to negative interest rates has also increased fears over another escalation in global currency wars with Beijing forced to devalue the yuan. China’s reserves data for January, due within the next few days, will be extremely important for international confidence with any further decline much above US$100bn likely to trigger another severe bout of market turbulence and risk aversion. A much smaller drop in reserves would ease immediate fears and ... (full story)