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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ICYMI – Credit Suisse raised its S&P 500 year-end forecast to 4,70, from 4050
A boosted forecast for US equities from CS, info comes via Reuters:Credit Suisse citing a decline in the near-term U.S. recession risk"Our base case is that a recession will be averted, inflation will remain sticky near current levels, and monetary policy will tighten...
Citi’s global head of commodity research sees oil in a $70 – $90 range (floor – ceiling)
Bloomberg (gated) reporting on an interview it had with Ed Morse, global head of commodity research at Citigroup:Oil is unlikely to fall below $70 a barrel, but it would take a “wild card” event to push prices above $90OPEC+ doesn’t want oil prices to fall below $70...
Japan data – Reuters Tankan shows Large Manufacturing and Non-manufacturing sentiment slip
Large Manufacturing sentiment index is +3 in July vs. +8 in Junefirst drop in 6 monthsmany firms cited chip shortages and the elevated costs of raw materials as negative factorsmanufacturers' sentiment seen at +7 in 3 months timeand Non-manufacturing sentiment index...
NZD marked higher after NZ CPI data higher than expected
The data is here:The y/y came in at 6% vs. 5.9% expected. For more, see that link above.Both the q/q and y/y are down from Q1. The Kiwi$ has been marked higher, I'm not sure that is sustainable. These numbers seem unlikely to sway the Reserve Bank of New Zealand from...
New Zealand Q2 CPI 1.1% q/q (vs. expected 1.0%)
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,...
ECB officials are worried about communicating whats next after the July rate hike
Bloomberg has the piece, citing unnamed European Central Bank officials, saying that members of the Governing Council consider communication about what will happen after the July 27 rate hike their biggest challenge:With policymakers from across the spectrum insisting...
ICYMI – Morgan Stanley CEO Gorman said Fed rate cuts won’t happen in 2023
Morgan Stanley CEO Gorman spoke on Tuesday, in brief: it's hard to argue for more rate increasesrate cuts wont happen this yearsays a recession is less likelyRate cut this year? Agree, nope, not gonna happen. -Anyway, more immediately, the Federal Open Market...
Federal Reserve rate cut seen in Q2 of 2024
The most recent Bank of America global fund manager survey shows expectations are skewing towards Q2 of 2024 for the first Federal Open Market Committee (FOMC) rate cut:Some of the other survey results:60% expect weaker global growth68% say the economy will see a soft...
New Zealand inflation data is expected to support the RBNZ on-hold monetary policy
The data is due at 10.45am New Zealand time:2245 GMT6.45pm US Eastern timeBNZ snippet preview of the data:For the Q2 CPI release, the consensus sees inflation again coming in under RBNZ estimates, at 0.9% q/q and 5.9% y/y. The data should reinforce the view that both...
BoA believes 2024 could be a transformative year for the Japanese yen (JPY) – pressured
Bank of America believes that 2024 could be a transformative year for the Japanese yen (JPY) with the implementation of the expanded NISA (Nippon Individual Savings Account), a tax-exempt investment account for individuals. The bank expects this move to widen the...