The South China Morning Post (may be gated) reported on China’s US$1.35 trillion sovereign wealth fund increasing its equity stakes in the nation’s four biggest banks:stoking speculation authorities are trying to shore up confidence in the market after an exodus of...
PBOC is expected to set the USD/CNY reference rate at 7.3179 – Reuters estimate
People's Bank of China USD/CNY reference rate is due around 0115 GMT.The People's Bank of China (PBOC), China's central bank, is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate...
Monetary Authority of Singapore maintains prevailing rate of appreciation of policy band
Monetary Authority of Singapore, Singapore's central bank, leaves policy settings unchanged, as expected.will maintain the prevailing rate of appreciation of the S$NEER policy band will be no change to its width and the level at which it is centredThe MAS says it'll...
US politics – Scalise withdrawing from the Speaker race. Failed to get enough support
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,...
USD/JPY back nudging towards 150 – Japanese (verbal) intervention has started already
The USD jumped higher in Thursday trade following the inflation data. ICYMI:US September CPI +3.7% y/y versus +3.6% y/y expectedAnd:USD/JPY is back on approach to 150:It seems likely there will verbal intervention comments from Japan during the session here today. And...
JP Morgan analyst shrugs off the US CPI data: really not much going on
JPMorgan Asset Management Chief Global Strategist David Kelly was interviewed (Bloomberg TV) after the US CPI report.The data is here ICYMI:US September CPI +3.7% y/y versus +3.6% y/y expectedAnd:JPMAM analyst Kelly:the CPI, I think it was close to ... exactly on...
SGD traders heads up – Monetary Authority of Singapore policy statement due today
The Monetary Authority of Singapore (MAS) is the country's central bank. It has two scheduled policy meetings a year, in April and October.Today's statement is expected to have no change to policy. In April the MAS left settings unchanged.---Note that the MAS's key...
TD on “worries about a lack of demand for Treasuries”, could see a run to 5%
If you haven't seen this, please check it out, its essential, and troubling, reading:A note from TD also looks at the UST market, noting that dynamics there could soon see a run to 5%. Ugh. This week's 3s, 10s, and 30s Treasury auction series was met with weaker...
New Zealand data – September Card retail sales -0.8% m/m (prior +0.7%)
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,...
New Zealand September Manufacturing PMI 45.3 vs. prior 46.1
BusinessNZ / BNZ September Manufacturing PMI remains in deep contraction. New orders fell to 44.9 from 46.6 in the prior month Bank of New Zealand senior economist Doug Steel:"It is always difficult to know the precise drivers of any particular PMI result but judging...
Will a 25bp interest rate increase be the Christmas gift from the FOMC?
The 'FedWatch' tool is based on the probabilities of changes to the Fed Funds rate and U.S. monetary policy, as implied by 30-Day Fed Funds futures pricing data.Despite skyrocketing PPI and higher-than-expected CPI data this week the pricing for November remains...
Iran’s Foreign Minister publicly states his regime’s support for brutal terrorist attacks
Iranian Foreign Minister Hossein Amir Abdollahian is in Beirut and spoke at a press conference.I offer congratulations from the Palestinian people on Operation Al-Aqsa Flood"Al-Aqsa Flood" was the terrorist attack targeting civilians in Israel carried out by Hamas...
Forexlive Americas FX news wrap: Yields and dollar spike after terrible bond auction
Markets:S&P 500 down 0.7%WTI crude oil flat at $83.51US 10-year yields up 10.4 bps to 4.70%Gold down $5 to $1868USD leads, AUD lagsThe geopolitical premium in the bond market has quickly left as the situation remains contained to Israel-Palestine, at least so far....
More from Fed’s Collins: Resilient economy means higher rates for longer
Federal Reserve Bank of Boston President Susan Collins spoke earlier:She went over similar ground to her comments the previous day:Adding more now, from the Q&A: Resilient economy is why rates will need to say higher for longerIs carefully watching commercial real...
Brent crude oil – the demand worries vs. supply worries continue to play out
Oil gained in Thursday trade, those more worried about supply issues were the winners for the day. The supply worries centre on OPEC/Russia output cuts and the ramifications of terrorist attacks on Israel on Middle East stability. Demand worries focus on global...
US indices snap 4-day win streak as concerns about CPI and US debt increase fear
The major US stock indices are closing lower as CPI data was a bit higher than expectations and then the lower demand for the 30 year auction reminded traders that the US treasury supply is not going to be lower anytime soon, and if you start losing buyers (like the...
Economic calendar in Asia Friday, 13 October 2023: Chinese inflation and trade data
The data from China is the focus. The reports we've had on the low, low, low level of inflation (and the anecdotal evidence that Chinese shoppers don't believe the data) means the trade data will grab the most attention. China's economy is showing tentative signs of...
Trade ideas thread – Friday, 13 October 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,...
Fed’s Collins: Bond yield rise likely reduces need for near-term Fed hike
Fed is at or near the rate hiking cycleToo soon to take prospect of additional hike off the tableBond yield rise likely reduces need for near-term Fed hikeLatest CPI underscores uneven progress towards 2%Current monetary policy phase calls for patienceToo soon to say...
The USD is surging after stronger CPI, a crummy auction and a surge in yields
The US CPI data this morning pushed the dollar higher, AND now the crummy 30-year bond auction has exasperated the push higher in the greenback sending major currency pairs against the US dollar through technical levels in the process. Bond yields are higher. Stocks...