The Australian dollar took a hit during the session on the release of May 2023 monthly inflation data. This came in at 5.6%, well below the 6.1% consensus mid-point estimate. Core measures for the month remained above 6% but it was the headline that the market...
The Swiss National Bank will be publishing a report on monetary policy on Wednesday
The Swiss National Bank (SNB)'s Quarterly Bulletin for Q2 2023 will be released at 1300 GMT, which is 0900 US Eastern time. The Bulletin typically includes sections covering: Monetary policy:With an assessment of the current and forecasted state of the Swiss economy,...
BOJ will intervene if USD/JPY threatens break of 150: “intervention … the last option”
A few comments on the yen from around the place. Dai-Ichi Life Research Institute says the Bank of Japan are only going to step in if the yen is about to break through 150: “Although they did it last year, currency intervention is still the last option.”Mitsubishi UFJ...
China industrial profits data for May fall again – NBS cites hit from insufficient demand
Chinese Industrial Profit for May comes in at -12.6% y/yprior -18.2%For the YTD January - MaY period Industrial Profits are -18.8% y/yprior -20.6%China's National Bureau of Statistics (NBS) says profits took a hit from insufficient demand but are improving (ie not as...
Australian dollar marked lower with the CPI data coming in well under what was expected
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Australian monthly CPI (May) 5.6% y/y (vs. expected 6.1%)
A much better inflation figure from Australia that probably takes a July rate hike off the table. Comes in at 5.6% y/y, a 13 month lowexpected 6.1%, prior 6.8%The 'core' reading that takes out volatile items and holiday travel is not so encouraging, though, coming in...
PBOC sets USD/ CNY mid-point today at 7.2101 (vs. estimate at 7.2092)
People's Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from this daily reference rate.CNH is the offshore yuan. USD /CNH has no restrictions on its trading...
On USD/JPY towards 145: “We are now approaching FX intervention territory “
I posted earlier on the l;evel to watch according to NAB:More from NAB on the yen:Japan, is ... (engineering) a lower currency. The move up in core yields alongside improvement in (equity) risk appetite are supporting a weaker JPY given the BoJ ultra-easy policy.We...
Data on Tuesday showed inflation well off its highs in Canada – Bank of Canada implication
The May 2023 inflation data from Canada is here:RBC provide a "bottom line" forecast of what it means for the BoC:Although slowing, underlying inflation trends in Canada are still running well-above the BoC’s 2% target. Higher interest rates are cutting into household...
PBOC is expected to set the USD/CNY reference rate at 7.2092 – 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...
An optimistic take on promises from China’s Premier Li Qiang for stimulus measures
My take on the remarks from the Premier yesterday was pretty downbeat:Analysts at ANZ are a bit more optimistic though, bolding is mine:China’s Premier, Li Qiang said that growth has picked up this quarter. Nevertheless, they will roll out more practical, effective...
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145-150 in USD/JPY nominated as the area to watch for Bank of Japan yen intervention
Via National Australia Bank on the yen. Analysts at the bank say that Bank of Japan intervention to buy yen is likely if USD/JPY trades into the 145-150 band. They note that current policy from the BOJ is not supportive of long-term yen strength. Rates higher in the...
JP Morgan’s Kolanovic doesn’t like stocks for H2 2023: “risk-reward remains unattractive”
JP Morgan’s Kolanovic says the second half of this year presents a 'challenging backdrop' for equities:“We expect a more challenging backdrop for stocks in H2 and believe risk-reward remains unattractive"Citing:given the decelerating economy and a likely recession...
Japan’s Kanda (yen intervention guy) says will take appropriate action in excessive moves
Japan's Finance Ministry's Vice Finance Minister for International Affairs Kanda. He is the guy who will instruct the BOJ to intervene, when he judges it necessary. Often referred to as Japan's 'top currency diplomat'.Closely monitoring FX market moves with a high...
Goldman Sachs raised their Q2 US economic growth tracking estimate due to better data flow
Goldman Sachs on the data flow and their better projections that flowed from it:BOTTOM LINE: The consumer confidence index was stronger than expected in June, jumping to its highest level since January 2022, as both the present situation and expectations components...
Wall Street Journal: U.S. Considers New Curbs on AI Chip Exports to China
The Wall Street Journal with the report (gated)AI is the darling of the stock market, this won't be good news for the sector's stocks as it hits. The Biden administration is considering new restrictions on exports of artificial intelligence chips to China, as concerns...
US President Biden says the economy is so strong now that he doesn’t expect a recession
US President Biden comment hitting the news sources. I guess this frees up the Fed to hike more then, right?Biden is to deliver a speech on economic policy on Wednesday, 28 June 2023, US time. "Bidenomics" is the phrase his aides use to describe his economic policies....
Australian CPI data due today – 3 previews
I posted a preview of the May Month inflation data due from Australia on Wednesday, 28 June 2023:A few 'what to expect' from:ANZ:We expect the monthly CPI indicator for May to show an annual lift of 6.0%, though expected increases in electricity and housing costs pose...
It’s a FED, ECB, BOJ, BOE bonanaza today – Powell, Lagarde, Ueda, Bailey all speaking
The European Central Bank conference in Sintra, Portugal broguth plenty of central bank speakers on Tuesday, links to comments can be found here:And the conference continues today with a heavy-hitter panel of Governors to come. The full agenda for Wednesday, 28 June...