This tees up a bid in bonds as we get into the open in Europe later, with UK gilt yields set to observe a marked fall surely. The early signs of a peak in inflation is a welcome development for the economy and gives some breathing room for the BOE to not be too overly...
Sterling falls on softer UK inflation numbers
The report here helps to pull back the recent hawkish market pricing on the BOE and that is dragging the pound lower on the day. It's a pretty straightforward one as price pressures may be starting to ease in the UK, which is a welcome development to the economy. Not...
UK June CPI +7.9% vs +8.2% y/y expected
Prior +8.7%Core CPI +6.9% vs +7.1% y/y expectedPrior +7.1%The pound is dragged lower as we see consumer inflation miss on estimates for the month of June. This is a positive development for the UK economy, and it does lead to lesser conviction for the BOE to go too...
FX option expiries for 19 July 10am New York cut
There is just one to take note of for today, as highlighted in bold.That being for EUR/USD at 1.1250, which may not be too impactful in my view. The level is one that doesn't hold any technical significance but considering the price action this week, it may help to...
Inflation the main focus in European trading today
The dollar is keeping somewhat steadier so far, helped out by a bounce in USD/JPY after BOJ governor Ueda played down expectations of a policy tweak later this month. The pair is now trading back above 139.00 as we see some quarters of the market get a little...
JP Morgan says 2 factors could lead to dedollarization – and markets are not pricing it in
Via Bloomberg reporting (gated) on a JP Morgan note for clients.#1 among the factors that could threaten the dollar’s long-term dominance is political dysfunction in the US that could block efforts to manage the national debt, “preventing a government from stabilizing...
New Zealand CPI data higher than expected – ANZ still see another RBNZ rate hike, November
Earlier today we had the official CPI data from Stats NZ:The New Zealand Q2 inflation data was published earlier from Stats NZ:New Zealand Q2 CPI 1.1% q/q (vs. expected 1.0%)NZD marked higher after NZ CPI data higher than expectedResponses:And, a few minutes ago we...
The RBNZ has published its own inflation data: 5.8% y/y in Q2, same as the Q1 reading
Earlier today we had the official CPI data from Stats NZ:The New Zealand Q2 inflation data was published earlier from Stats NZ:New Zealand Q2 CPI 1.1% q/q (vs. expected 1.0%)NZD marked higher after NZ CPI data higher than expectedResponses:Now from the Reserve Bank of...
ForexLive Asia-Pacific FX news wrap: USD/JPY trades higher after cagey Ueda
Session wrap Forex news for Asian trading on Wednesday, 19 July 2023 <!--> Eamonn Sheridan Wednesday, 19/07/2023 | 02:55 GMT-0 19/07/2023 | 02:55 GMT-0 --> Bank of Japan Governor Ueda spoke during the US timezone, with comments indicating he didn’t sound like...
China’s Industry Ministry says industry facing insufficient demand and declining revenues
China's Industry Ministry statement:China's industrial sector faces difficulties and challenges such as insufficient demand and declining revenuesWill formulate plans to stabilise growth of 10 sectors including auto and steelEarlier from China today, finance ministry...
GBP traders – eyes on UK inflation data due Wednesday – preview
Justin posted a comprehensive preview of the UK CPI data to come for June here:Adding in some snippets from about the place.TD:Base effects and another decline in petrol prices will likely pull down headline inflation to 8.1% YoY – just 0.2ppts above the MPC's...
New Zealand CPI data higher than expected – KiwiBank says RBNZ will take comfort
The New Zealand Q2 inflation data was published earlier from Stats NZ:NZD/USD was marked up, but if you check out your charts you'll see it wasn't sustained:ASB response:KiwiBank now:some good news on inflationInflation has peaked, globally. We are simply importing...
New Zealand CPI data higher than expected – ASB sees RBNZ staying on sidelines
The New Zealand Q2 inflation data was published earlier from Stats NZ:NZD/USD was marked up, but if you check out your charts you'll see it wasn't sustained:ASB on the data:core inflation remains stubbornsticky non-tradeables inflation RBNZ will be kept on alert and...
PBOC sets USD/ CNY reference rate for today at 7.1486 (vs. estimate at 7.1798)
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...
Australia data – eleventh consecutive negative print for the Leading Index growth rate
The headline: Westpac Leading Index for June +0.11% m/m (prior -0.26%). More attention is paid to the Leading Index growth rate, as below:Westpac's summary from their report:The six-month annualised growth rate in the Westpac-Melbourne Institute Leading Index, which...
Morgan Stanley is moving 200 developers out of mainland China in response to new data law
Bloomberg (gated) with the news of Morgan Stanley moving staff out of China:It was super easy to see this coming. From back in April:And then June:Chinese Communist Party officials have been whining non-stop about "Westerners" trying to stifle their economy. They...
87 of 109 analysts polled expect next week’s Fed rate hike to be its last
The latest Reuters poll of analysts finds that all 106 expect the Fed to hike by 25bps at next week's meeting, taking the Fed Funds benchmark overnight interest rate to the 5.25%-5.50% range 19 out of 106 expect the Fed to raise rates again after a July hikeAs for the...
PBOC is expected to set the USD/CNY reference rate at 7.1798 – 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...
TD on the first Federal Reserve rate cut – penciled in Q2 of 2024
I posted earlier on the Bank of America fund manager survey:TD has a similar timing for their first expected Federal Open Market Committee (FOMC) rate cut:Finding the right level of interest rates is only the first order of tasks. The next becomes how long to hold at...
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