Eamonn Sheridan

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Central Banks
usdinr rbi rate cut 05 December 2025 2
Central Banks

INR traders heads up: Reserve Bank India rate cut expected today at 0430 GMT/2330 Eastern

  • The RBI’s tolerance for a weaker rupee signals reduced intervention risk and greater FX flexibility, but rising outflows and oil-driven import costs keep depreciation pressures alive. Equity inflows may stay cautious until external balances stabilise or clarity emerges on India-US trade and index-inclusion prospects. Softer US yields could provide limited relief.
Central Banks
BOJ AI IL
Central Banks

Japan finmin Katayama: Will closely monitor market developments (plus wider comments)

  • The comments reinforce a steady policy backdrop ahead of a potential BOJ rate shift. Affirming BOJ autonomy reduces fears of political pressure, while the focus on fiscal sustainability helps anchor JGB markets, though vigilance toward yields and yen volatility remains key.
Central Banks
PBOC
Central Banks

PBOC is expected to set the USD/CNY reference rate at 7.0751 – Reuters estimate

  • The People's Bank of China is slowing the appreciation of CNY
Central Banks
rba Reserve Bank of Australia Australia Australian dollar aud 2
Central Banks

Poll: RBA expected hold at 3.60% this month as outlook shifts to long pause through 2026

  • A unanimous hold signal reinforces stability in short-end pricing, but the shift toward a long pause — and rising chatter about possible hikes — may lend support to AUD and keep front-end yields firm. Markets will watch the December statement closely for any tightening bias as inflation pressures remain elevated.
News
China trader sad
News

China debt crackdown pushes LGFVs into costly shadow loans, reviving hidden-risk worries

  • The resurgence of shadow lending underscores persistent stress in China’s local-government finances and weak infrastructure spending — a drag on growth-sensitive assets. The trend signals higher credit risk in LGFV-linked markets and may limit Beijing’s ability to stimulate without widening fiscal strain. Investors may interpret this as medium-term negative for China credit, construction supply chains, and commodity demand.
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