The miss in the US CPI saw the US Dollar being sold off hard across the board as the market expected the end of the rate hike cycle after the July meeting. The US data though kept on surprising to the upside and this has led the market to have a rethink. In fact, we...
Japan keeps overall view on the economy in July
The overall assessment on the economy was maintained as "recovering moderately" with consumption, capital expenditure and exports remaining firm. But the government now says that the assessment on current business conditions is "picking up", an improved view for the...
NAB now sees no RBA rate hike in August
That is now one of Australia's "big four" banks making a revision to their earlier call, in which they expected a 25 bps rate hike by the RBA next week. I reckon we might see more firms make a similar call to NAB here but it is rather borderline at the moment. In...
FX option expiries for 26 July 10am New York cut
There are a couple to take note of on the day, as highlighted in bold.They are both being for EUR/USD at 1.1025 and 1.1070-75. There might not be much technical significance to those levels but given recent price action and the fact that we have to wait on the FOMC...
Deutsche Bank expect European growth only a little above stagnation over next few quarters
On Tuesday the European Central Bank released its latest Bank Lending Survey. Deutsche Bank says its been keeping a close eye on lending standards for evidence of monetary policy lags. On the latest report:On the downside, the BLS showed the sharpest decline in demand...
Australian Treasurer Chalmers says there is a long way to go to beat inflation
<!--> --> Eamonn Sheridan Wednesday, 26/07/2023 | 03:10 GMT-0 26/07/2023 | 03:10 GMT-0 <!--> --> Australian Treasurer Chalmers speaking after the CPI data published earlier today:AUD - decline in inflation should be enough to keep the RBA on hold at...
ForexLive Asia-Pacific FX news wrap: Awaiting the Federal Open Market Committee (FOMC)
The Australian dollar was a mover on the session, marked lower after inflation data for Q2 2023 was released. The headline and one of the core measures (trimmed mean)came in lower than expected, and the annualised rate for the past six months to 2.6% were all positive...
FOMC preview – “JPMorgan’s Trading Desk Sees Fed ‘Hike and Pause’ Lifting Stocks”
Bloomberg convey the info in a note from JP Morgan on FOMC scenarios:An interest-rate hike plus statements suggesting policymakers will hold off at their next meeting could push the S&P 500 as much as 0.75% higherassigns a 65% probability for the central bank to...
IMF warns of upside risk to Japan inflation, urges BOJ to start preparing for tightening
The International Monetary Fund's chief economist Pierre-Olivier Gourinchas spoke on Tuesday, at a news conference held after the release of the IMF's updated World Economic Outlook report."Right now, the risk is probably on the upside, that maybe inflation pressures...
AUD – decline in inflation should be enough to keep the RBA on hold at their next meeting
The inflation data is here:And AUD response:Analyst responses are coming in, this rapid one via ING:Another decline in inflation should be enough to keep the Reserve Bank of Australia (RBA) on hold at their next meeting, but the helping hand from base effects will...
AUD/USD marked lower after better than expected (with a caveat) inflation data
The data post is here:Headline and trimmed mean core inflation both came in lower than expected while the weighted median core measure came in slightly above. the big caveat though was that services inflation, that the Reserve Bank of Australia is paying close...
Australian Q2 Headline CPI 0.8% q/q (vs. 1.0% expected)
Inflation data from Australia for the April - June quarter of 2023, along with June month CPI also:more to comeThe 'trimmed mean' is the preferred measure of underlying, or core, inflation.There is another core measure, the weighted median: 1.0% q/q vs. expected 1.1%...
PBOC sets USD/ CNY mid-point today at 7.1295 (vs. estimate at 7.1341)
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...
BlackRock says markets underestimate inflation’s persistence, Fed hike and hold rates high
BlackRock preview what they expect from the Federal Open Market Committee (FOMC) on Wednesday, 26 July 2023 and further ahead: "Central banks are set to hike policy rates this week. Markets expect rate cuts to soon follow due to cooling inflation, whereas we see...
Australian CPI data due today, preview – RBA will be comforted, no rate hike next week
ANZ's preview of the data due today and the implications for the Reserve Bank of Australia policy meeting on August 1:We expect both headline (+6.2% YoY) and trimmed mean inflation (+5.9% YoY) to have moderated in Q2. The RBA will likely take comfort that inflation...
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PBOC is expected to set the USD/CNY reference rate at 7.1341 – 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...
Japan data – PPI Services (Corporate Services Price Index) +1.2% y/y (expected 1.4)
Japan PPI Services (Corporate Services Price Index) +1.2% y/y expected 1.4%, prior +1.6%Yen is barely moved. - Japan Services Producer Price Index (PPI) measures the average change over time in the prices received by service providers (in the private sector) for their...
ANZ on higher oil prices – China demand expected higher, supplies tightening
ANZ on crude oil developments driving the price up:well supported by the broad risk-on tone across commodities sparked by the Politburo statementfurther signs of tightening supplies remain the key driver of the marketRussia’s seaborne crude exports from Baltic and...
Goldman Sachs preview the European Central Bank meeting & leave EURUSD forecast unchanged
Goldman Sachs expectations for the European Central Bank (ECB) at this week's meeting on Thursday. This summary is via the folks at eFX. For bank trade ideas, check out eFX Plus. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109...