Global Themes

Caution

The HKD fell to lowest level in six months overnight after a more cautious stance from the US Fed causes the greenback to weaken.

The Federal Reserve minutes, released overnight, continued to signal the Fed was keen to raise rates, but some members raised a note of caution about a slowing in inflation.

The release saw the greenback slip. The HKD fell in sympathy.

Downgrade

Earlier, markets were pressured yesterday after Moody’s downgraded Chinese debt from Aa3 to A1 (from fourth-best to fifth-best).

Commodities were hit by the news and crude oil was lower.

Most major currencies were stronger overnight with the euro up 0.3%, the Swiss franc also up 0.3%, and the British pound up 0.2%.

From overseas, UK GDP can have an impact on the British pound, while a speech from key US policy-maker Lael Brainard will also be closely watched after last night’s Fed

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