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,...
US yield dribbling lower helping the USD to do the same
The US dollar is falling away across the FX board with yields pulling back a little lower. EUR, GBP, AUD, NZD, CAD are all up against the big dollar. Even the hapless yen is gaining some ground. As for the yuan, a little lift for it also, which the PBOC will welcome....
TD like NZD/CAD a lot lower, could fall to 0.7670
TD's key takeaways on NZD/CAD: 1. Divergence in Terms of Trade: TD highlights a significant divergence in the terms of trade between New Zealand and Canada. Terms of trade measure the value of a country's exports relative to the value of its imports. A rising terms of...
PBOC sets USD/ CNY reference rate for today at 7.2006 (vs. estimate at 7.3065)
Another huge discrepancy between the modelled expectation and the PBOC decision. Yesterday was a 10 big figure deviation, today also. The Bank is signalling it'd like to slow the pace of the yuan's fall. State banks have been intervening to sell USD/CNY also:People's...
UBS expect US dollar upside to be limited from here – their most preferred is the euro
Snippet from UBS on the Federal Reserve and US dollar outlook. On the minutes of the FOMC released this week:The minutes didn’t actually deviate much from the script. While markets may not have been positioned for a hawkish tilt to the commentary, we see few actual...
PBOC is expected to set the USD/CNY reference rate at 7.3065 – Reuters estimate
In Chinese media today a report says the People's Bank of China should use its countercyclical measure to support the yuan. Yesterday the People's Bank of China signalled very clearly it'd like the yuan to stop plunging so rapidly, with a reference rate more than 10...
Citigroup forecasts Brent oil as low as $68, say to short oil after summer is over
Info comes via an Oil Price article. In summary:After summer the current oil price rally will be over. A hurricane—and only a hurricane—is the one thing that could change the fatter supply outlook for the post-summer months. Citigroup’s commodity research team warned...
Chatter about that US regulator is set to approve Ether-Futures ETFs
Bloomberg (gated) on a cryptocurrency tailwind if true. The US Securities and Exchange Commission (SEC) is poised to allow the first exchange-traded funds based on Ether futures, a major win for several firms that long have sought to offer the productsThe regulator...
Japan core-core CPI data comes in above 4% again, hits 4.3% in July
Japan July inflation data. Underlying inflation pressures have a rocket under them. The 'excluding food and energy' measure is known as 'core-core'. Its the closest to the US measure of core inflation. It hit 4.3% in July. If you've been following along you'll know...
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Barclays slashed their China GDP forecast to 4.5% (prior 4.9%)
Barclays revised its projection for Chinese economic growth for this year to 4.5%, from 4.9%.For 2024 analysts at the bank project 4% GDP growthFor the current quarter, Q3 2023, Barclays expects GDP at 3.5%As for the People's Bank of China, the analysts expect an RRR...
Coinbase says it has system issues but funds are secure. Meanwhile BTC extending lower.
Coinbase has made a statement saying its systems are experiencing issues and they are working on a fix. Say that funds remain secure.Meanwhile, Bitcoin is extending the losses it had Thursday:There are rumours that SpaceX has sold its stake in BTC. The Wall Street...
Brent oil price forecast higher – UBS not expecting the recent slip lower to persist
From a UBS note, in summary. Analysts at the Gloabl Wealth management arm do not expect recent price falls to persist, in light of the oil market’s firming fundamentals: We expect global oil demand to hit a record high in August. Unlike in other commodities markets,...
Bank of Japan watch – MUFG says USD/JPY in the danger zone for intervention
MUFG is wary of Bank of Japan intervention in the yen, citing USD tailwinds (from the Federal Open Market Committee (FOMC) minutes specifically) and JGB yields.The short-term bias remains favourable for the Dollar and the minutes and the data support that view. The...
ICYMI – further intervention from China to support the yuan overnight
USD/CNH is off its Thursday highs with Chinese State banks intervening to sell USD/CNY.I gave a heads up to the intervention yesterday:And Justin followed up with more later in the session:There was further selling by State banks during London time, but the impact has...
China’s 2nd largest property development group has filed bankruptcy protection in the US
Info via Reuters that is seeking protection from creditors in the United States under Chapter 15 of the U.S. bankruptcy code Earlier this week, the embattled property developer resolved to delay its meetings for the Hong Kong CEG Class A and Class C holders of debt to...
Note for diary & preview – Powell to speak at 10 am ET on Friday August 25 – Jackson Hole
Federal Reserve Chair Powell will deliver his speech at Jackson Hole next Friday, 25 August.scheduled at 10.05 am US Eastern time I posted a preview yesterday:---The Federal Reserve Bank of Kansas City will host the 2023 Economic Policy Symposium, "Structural Shifts...
Forexlive Americas FX news wrap: Yields rise further but US dollar gives some back
Markets:Gold down $3 to $1888US 10-year yields up 2.4 bps to 4.28%, touches 4.33%WTI crude oil up 67-cents to $80.05S&P 500 down 34 pointsJPY leads, AUD lagsTwo things are driving market sentiment right now: 1) Rising bond yields 2) China economic worries. Those...
Japanese inflation data for July headlines the economic calendar in Asia Friday, 18 August
Japan CPI data is on the economic data agenda for the session here in Asia. The July data for Tokyo showed very solid inflation indeed. The 'core-core', which is the closest to the US measure of core inflation hit 4%. The inflation data for Tokyo is viewed as a...
Trade ideas thread – Friday, 18 August 2023
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,...