China was once again a focus with Hong Kong’s Hang Seng index plunging again, on approach to 20% down from its high in January this year. After falling circa 2% it has found support and as I post its only down around 1% on the day. Rumours are circulating that Chinese...
Morgan Stanley cuts China 2023 GDP growth forecast to 4.7% (from 5.0%)
Morgan Stanley has jumped on board to cut its economic growth forecast for China:cuts 2023 GDP growth forecast to 4.7% from their previous forecast at 5.0%cuts 2024 growth forecast to 4.2% from previously at 4.5%Many of the cuts we have had from analysts are back...
Further Chinese intervention to prop up the yuan: State banks USD/CNY sellers
Major Chinese State owned banks selling dollars to buy yuanhad been doing so earlier this week during Asia hours, also during London and US hoursonce again seen active today, 17 August 2023, buying USD/CNY in spot marketEarlier this week:The intervention didn't make a...
AUD/USD marked lower after the poor employment report – is there a caveat though?
The data is here, a large drop in full time employment makes the report even worse then the sad headlines:But, the ABS have noted a warning on this data:“July includes the school holidays, and we continue to see some changes around when people take their leave and...
Australia July Jobs -14.6K (vs. +15K expected) & Jobless rate 3.7% (vs. 3.5% exp)
A sad report from Australia. Outsized fall in full time employment is not encouraging. AUD/USD marked lower to under 0.6370.The unemployment rate at 3.7% is still just off its nearly 5-decade low, but is back up at the level from May last year. underutilization rate...
Hong Kong’s Hang Seng index to open nearly 2% lower today, down 20% from January high
High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives,...
PBOC sets USD/ CNY central rate at 7.2076 (vs. estimate at 7.3047)
The Bank is accepting a falling yuan, but not at the pace the market is pricing. Another huge discrepancy between the modelled expectation and the PBOC decision. I'm not sure about the yuan as a candidate for reserve currency status if its so subject to the whims of...
HSBC highlight two continuing headwinds that’ll drive the Chinese yuan even lower
HSBC say that CNY could face more headwinds from China’s persistent run of weak data and further widened yield disadvantageAnd that People's Bank of China efforts to prop up the yuan are half-hearted:The PBoC may continue to smooth volatility, but we do not expect it...
Singapore July exports slump, NODX down 20% y/y
Singapore Non-oil Domestic Exports (NODX) for July 2023-3.4% m/m expected +1%, prior +5.4% -20.2% y/y expected -14.4%, prior -15.5%-Singapore Non-oil Domestic Exports (NODX) measures the value of goods exported from Singapore excluding oil and petroleum products.an...
PBOC is expected to set the USD/CNY reference rate at 7.3047 – Reuters estimate
People's Bank of China USD/CNY reference rate is due around 0115 GMT.The People's Bank of China (PBOC), China's central bank, is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate...
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Japan’s July exports -0.3% y/y (expected -0.8%) & Imports -13.5% y/y (expected -14.7%)
Trade balance data from Japan for July 2023, along with Machinery orders for June. exports fell for the first time in 29 monthsExports to:China -13.4% y/ythe US +13.5% y/ythe EU +12.4% y/yI think you can see the problem, right? China's economic stumble out of...
RBNZ Orr says Bank’s cash rate projections for next 2 years deviate little from 5.5%
Reserve Bank of New Zealand Governor Orr is speakingsays the Bank has time to watch and wait (and worry!) on interest ratesthere are too many uncertainties to provide forward guidanceis convinced the Bank is being restrictive with its policy over the next 1 to 2...
Barclays on what’s driving yen selling (spoiler: carry trade). And an intervention warning
Barclays analysts say their modelling indicates the recent decline is not explained by rates or equities, but it's the resurgence of the carry trade that's responsible. Which is a rates story anyway, right?Barlcays project a change though, forecasting USD/JPY towards...
New Zealand PPI data for Q2: Small index movement only
Producer Price Index data from New Zealand for Q2 2023, published by Statistics New Zealand (also known as Stats NZ).These are tame price movements. Earlier we heard from RBNZ Governor Orr on inflation in NZ:---The Producer Price Index (PPI) is a measure of the...
Coinbase has been given approval to operate a futures trading service
Coinbase has been granted regulatory approval from the National Futures Association (NFA), a CFTC-designated self-regulatory organization, to introduce crypto futures to its US institutional customers.The service will operate alongside the firm's existing spot crypto...
JP Morgan mulls corporate power, higher CPI, requires central banks re-start hiking cycle
Summary points of an extended piece from JP Morgan Global Economic Research on the 'fate of the global expansion'.Global corporate profit gains slowed less than expected due to upside surprises to real GDP and inflation While this resilience is supporting job and...
Morgan Stanley says Fed Reserve Chair Powell will keep his options open at Jackson Hole
Global Chief Economist at Morgan Stanley Seth Carpenter on Federal Reserve Chair Powell at the Kansas City Jackson Hole gathering coming up. says Powell will likely discuss future policy direction at the event thinks Powell won't promise any immediate changesbut...
US mortgages could hit 8% says Realtor economist
Mortgage interest rate remarks from Lawrence Yun,s chief economist at the National Association of Realtors in the US. He outlined a couple of scenarios:If the Fed says inflation is contained, then mortgage rates are likely to slide down to about 6% by year-endIf the...
Forexlive Americas FX news wrap 16 Aug: The USD moves higher as data remains strong.
The GBP was the strongest of the major currencies after higher-than-expected CPI data was released in the UK session. The AUD was the weakest. The USD moved higher today and just below the GBP for the strongest of the major indices. The dollar index (DXY) moved to the...