The People’s Bank of China fixed the onshore yuan stronger than expected at the reference rate setting today. The expected rate was just shy of 7.22 but the Bank set USD/CNY under 7.21. This was the second day in a row the PBOC had set the CNY stronger than expected....
Bank of Canada Deputy Governor Kozicki speaking Tuesday on inflation
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,...
Chinese Premier Li is speaking – says globalization is intact despite some setbacks
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,...
Morgan Stanley on US stocks – “risks for a major correction have rarely been higher”
A note from US equity strategist at Morgan Stanley Michael Wilsonsaid "risks for a major correction have rarely been higher""In our view, the headwinds significantly outweigh the tailwinds," "Our highest conviction view remains our well below consensus forecast for...
AUD/USD higher after yuan set higher
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,...
Offshore yuan is leaping higher
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 around 145 could be the trigger for Bank of Japan policy change
UBS SuMi TRUST Wealth Management in Japan with comments on the yen and a likely level to watch:Any rapid yen weakening, like toward 145 (to the U.S. dollar) in the short-term, might trigger an early (policy) adjustment as the BOJ is in favour of a stable yen move in...
PBOC set the onshore yuan stronger than expected, USD/CNH tumbling
I posted earlier on likely moves from the People's Bank of China to slow down the drop for the yuan:Which is what we have today. While the CNY is weaker, its been set not nearly as weak as was expected:USD/CNH has dropped (CNH is the offshore yuan, its gained from its...
Lacklustre start to the final week of June: Copper, Nikkei 225, EUR/GBP
Market RecapWall Street added to recent losses overnight (DJIA -0.04%; S&P 500 -0.45%; Nasdaq -1.16%), as the moderation from previous overbought technical conditions and extreme bullish sentiments continues. Amid the relatively quiet US economic calendar to start...
PBOC sets USD/ CNY central rate at 7.2098 (vs. estimate at 7.2194)
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...
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PBOC 1 of only 2 G10 central banks in easing mode. Weak yuan. Not currency rocket science.
Via National Australia Bank, comments on the Chinese yuan:June-to-date changes for major currencies shows the standouts are the 2.9% rise in USD/JPY and 1.8% gain for USD/CNY , against which every other G10 currency is stronger against the USD. Only two major central...
PBOC is expected to set the USD/CNY reference rate at 7.2194 – Reuters estimate
Yuan has had a one-way ticket to weakness. The PBOC have been supportive of the devaluation, a lower yuan is a form of stimulus for the export sector. The rapid pace of the fall is expected to result in the PBOC moving to slow the descnet. People's Bank of China...
Poll: Bank of England expected to raise rates 25bp at both the August & September meetings
The consensus expectation for the next moves from the BoE's Monetary Policy Committee is for two 25 bp rate ikes, at the next two meetings on August 3 and September 21.In a Reuters poll the consensus opted for 5.5% to be the peak, though there were higher, one analyst...
Australian weekly consumer confidence survey 74.9 (prior 72.4)
The ANZ - Roy Morgan consumer confidence survey is conducted weekly.Comes in at an improved, but still awful, 74.9The previous week's abysmal 72.4 was its weakest since April 2020ANZ comment:Consumer Confidence rose but is below 80 for the 17th straight week, the...
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Uk data – BRC Shop Price Index +8.4% y/y (prior +9%)
British Retail Consortium monthly shop price index, a monthly measure of UK shop price inflation.BRC survey results showed that prices in supermarkets and retail chains rose 8.4% in June y/yprior was 9.0% in May, the highest rate since the BRC's records began in...
Saudi Aramco believes oil market fundamentals remain solid for H2 2023
I had the headlines on this on Monday:The comments were from the Saudi oil giant's CEO Amin Nasser:“Overall, we believe that oil market fundamentals remain generally sound for the rest of the year” “Despite the recession risks in several OECD countries, the economies...
Canada May inflation data due on Tuesday 27 June 2023 – preview – “look for CPI to fall”
In brief preview from TD on the data due from Canada at 8.30 Eastern time:We look for CPI to fall 0.9% to 3.5% y/y in May0.5% m/m increase to be offset by base effectsEnergy will exert a modest drag, but we expect large contributions from food along with rents and...
UBS on the Russian coup and crude – “supportive of oil prices in the near term”
A UBS note from Sunday on the weekend's events on Russia (links below ICYMI).UBS says the coup attempt "appears over as soon as it began, there will be questions and suppositions about what all of this means for days and weeks to come".As for crude oil impact:"Given...