Commonwealth Bank of Australia economists on the RBA meeting next week. In summary from a longer piece:In another finely balanced decision,we expect the RBA to hike the cash rate one final time in August to 4.35%The RBA noted in July that fresh staff forecasts and the...
Westpac expects the Reserve Bank of Australia to hike cash rate by 25 bp next week
more to comeIn summary from WPAC:The Board is expected to be guarded on the positive news on headline inflation for the June quarter. Just as we saw at the May meeting - risks to achieving the inflation path, particularly in 2024, should see the Board taking more...
Bank of Japan preview – “good chance of a YCC policy change at today’s meeting”
Comments from a morning note from ING, first on the CPI data earlier:unlike other major economies, Japan’s inflation hasn’t yet reached its peakHeadline inflation will continue to go down slowly due to base effects and falling global commodity prices, but core...
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Australian data – Q2 PPI +0.5% q/q (expected 0.9%)
Q2 PPI +0.5% q/q, well under what was expected, slower inflation at the producer levelexpected 0.9%, prior 1.0%3.9% y/yexpected 3.9%, prior 5.2%more to come-Producer Price Index (PPI) is an economic indicator that measures the average change over time in the selling...
Australian data – June Retail Sales -0.8% m/m (expected 0%)
Australian June Retail Sales -0.8% m/m, very soft indeed and well below expectationsexpected 0%, prior +0.7%The Reserve Bank of Australia policy meeting is coming up on Tuesday, 1 August this sign of consumer weakness will be a strong factor for no rate hike. While...
PBOC sets USD/ CNY reference rate for today at 7.1338 (vs. estimate at 7.1665)
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...
BoA unconvinced the FOMC rate hike cycle is over, more ahead has “USD supportive aspects”
Bank of America economic analysts on their outlook for the Federal Open Market Committee (FOMC) and the implications for the US dollar. We retain our view that the Fed has one more policy rate hike in store and look for a 25bp rate hike at the September FOMC meeting...
ICYMI – Saudi Arabia is expected to extend oil supply cuts into September
While factors boosting demand for oil improved overnight and on Wednesday:strong economic data from the US, in gross domestic product and pending home sales in JuneFederal Reserve staff ditched their recession forecast it put in place in MarchOn the supply side came...
PBOC is expected to set the USD/CNY reference rate at 7.1665 – 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...
The US will not permit Hong Kong’s leader to attend the November APEC summit
This news will not be well received by Chinese Communist Party leadership. Via a Washington Post (may be gated) report: The White House has decided it will bar Hong Kong’s top government official from attending a major economic summit in the United States this fall,...
The yield on the 10 year Japanese Govmnt Bond has risen above the BOJ’s tolerance band top
The yield on the 10 year Japanese Government Bond has hit 0.505%.Above the 0.5% top of the Bank of Japan tolerance band (zero % +/- 50bps)highest since March 3USD/JPY is dropping as speculation continues there will be a Bank of Japan YCC tweak today, along the line...
Tokyo July CPI data comes in way above the 2% BOJ target rate. Again.
Tokyo area inflation. This is regarded as a leading indicator of nationwide inflation but its not a perfect 1 for 1 indication. The core-core is the 'ex. Food & Energy', which is the closest measure to the US core inflation rate. At 4% that is very robust...
South Korean June data: Industrial output -1% m/m (-0.3% expected)
Data from South Korea for June 2023Industrial output -1% m/m -0.3% expectedIndustrial output -5.6% y/y-5.5% expectedService sector output is +0.5% m/mRetail sales also up, 1% m/m-Mixed signals from the SK economy. The country is often referred to as a bellwether for...
Bank of Japan preview – DB says YCC tweak a 40% probability
Deutsche Bank on the Bank of Japan meeting coming up today:We see some policy revision as a circa 40% probability event but continue to expect no change in monetary stance as the baseline. For the Outlook Report, we expect the BoJ to increase the inflation outlook for...
Chevron: Q2 2023 Earnings Report Preview
Chevron Corp. is expected to report earnings on Friday (28/07) before market open, amid rising crude oil prices. The report is for the fiscal quarter ending June 2023. USOil prices broke $80/barrel for the first time since mid-April on Thursday (27/07). Analysts...
Conflicting views out of Goldman Sachs on the rate hike path ahead for the Federal Reserve
Goldman Sachs economists We continue to expect that today's hike will be the last of the cycle. Powell said that the FOMC will be particularly focused on the inflation data, and we expect the next few CPI reports to be soft. As a result, we expect that the FOMC will...
ICYMI: SEC Chair Gensler said the crypto market is “rife with fraud, rife with hucksters”
US Securities and Exchange Commission Chair Gary Gensler spoke on Thursday with Bloomberg TV on its "Bloomberg Markets" show.crypto is highly speculativeinvestors should not assume they're getting the protections of the securities laws, even though the securities laws...
Forexlive Americas FX news wrap 27 JulZ: ECBs hikes, with BOJ next. US data strong today
The JPY is the strongest and the GBP is the weakest of the major currencies. The strongest to weakest of the major currenciesThe day started with the ECB hiking rates by 25 basis points as expected. Shortly thereafter, a slew of economic data the US was released with...
Bank of Japan monetary policy meeting preview – YCC tweak or not is the question
Comments from ANZ on the Bank of Japan meeting today (for more on this meeting and the leaks we've seen, along with market pricing indications on what to expect, check out this here - Economic calendar in Asia 28 July 2023)ANZ:Although Ueda pushed back on expectations...