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,...
PBOC sets USD/ CNY reference rate for today at 7.1280 (vs. estimate at 7.1282)
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...
More Chinese banks cut rates
Earlier:Bank Of China have cut yuan deposit rates also. Others following along also. Earlier this week I posted on 'requests' from Chinese authorities to cut rates:But there is some head-kicking going on:Note: 'calls on' and 'asks' means getting a kick in the head in...
Chinese media speculate on a loan prime rate cut after banks reduced deposit rates
The news of commercial bank rate cuts is here:Next Thursday, the 15th, we'll get the latest MLF rate from the People's Bank of China. The MLF sets the stage for Loan Prime Setting on the 20th, the following Tuesday.Unless we get some sort of early move out of the...
The PBOC is expected to set the USD/CNY reference rate at 7.1282 – 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...
Industrial and Commercial Bank of China cuts yuan deposit rates
Industrial and Commercial Bank of China (ICBC) along with AgBank have cut yuan deposit rates. ICBC cuts 2 year yuan deposit rate to 2.05%cuts 5 year to 2.45%cuts 10 year to 2.5%Stimulus from China. I posted on 'requests' from Chinese authorities to cut rates...
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Japan Q1 GDP +0.7% q/q (flash was just +0.4%)
Japanese economic growth data for the January - March quarter.The flash reading for this is here:Japan Q1 GDP +0.4% q/q (vs. expected +0.1%)more to comeGDP in Q1 +0.9% q/q, the first gain in q3 quarterspreliminary was +0.4%, prior was 0.0%+2.7% y/yprelim was +1.6%,...
Eyes on the PBOC CNY rate today after a slump in CNH overnight
The Bank of Canada move reverberated across markets Wednesday:The rate hike from the BOC was a surprise, but just a should pout to Scotia for tipping it, as posted yesterday:In the wake of the BoC hike US Treasuries lost groundCAD strengthened immediately after the...
UK labour market momentum slowing – starting salaries rose at the weakest pace in >2 years
Reuters with the info via a survey of labour force recruiters in the UK. The Recruitment and Employment Confederation (REC):starting salaries for permanent staff rose at the weakest pace in over two years (although it acknowledges is still at a historically high pace...
UK data shows home buyer net enquiry balance highest since May last year
UK RICS House Price Balance May: -30%expected -38, prior -39RICS' house price balance, which measures the difference between the percentage of surveyors seeing rises and falls in house pricesThe Royal Institution of Chartered Surveyors' (RICS) measure of new buyer...
New Zealand Q1 data: Manufacturing sales volumes -2.1% q/q
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,...
Goldman Sachs says widespread adoption of AI puts S&P500 fair value up to 14% higher
A snippet from Goldman Sachs on artificial intelligence. we assume that widespread AI adoption boosts productivity growth by 1.5% per year over a 10-year periodGS argues that such a scenario means:S&P 500 fair value would be 9% higher than today, holding all else...
There is circa US$3bn in FX option expiries at 140.00 in USD/JPY at the 10am NY cut today
Justin will be along later in the European session with the full suite of forex option expires for the 10am NY cut on Thursday, 8 June 2023. In the meantime note that there is an enormous expiry at 140.00 today, just over USD3bn amount. 10am NY time is still a good...
Soros’ CIO expects more US banks to fail – more problems lurking beneath the surface
Chief investment officer of Soros Fund Management Dawn Fitzpatrick spoke at a Bloomberg event/conference:expects more US banks to fail smaller lenders are particularly vulnerable“There’s more problems under the surface,” Regulators have auctioned off sizable...
MUFG sees limited scope for USD/JPY to move higher from its current level
This summary of MUFG on the yen 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 per month. Get it here. MUFG reports that the perceived lack of urgency from...
ICYMI: Druckenmiller sees profits down 20-30%, higher terminal Fed rate, but he likes NVDA
Legendary investor and market wizard Stanley Druckenmiller spoke on Wednesday.Greg had his comment on NVIDIA here:Also from the Druck were less bullish remarks: Sees corporate profits down 20% to 30% Says the Fed will end up with higher terminal rates Says stickier...
ICYMI: Yellen spoke Wednesday: lowering CPI a ‘top priority’ & supports crypto regulation
US Treasury Secretary Yellen spoke in a wide-ranging interview with CNBC on Wednesday.You can find the full transcript here.Some of the highlights: Says I see a path to bringing down inflation while maintaining strong labor market Seeing some signs of easing in labor...
Forexlive Americas FX news wrap: Bank of Canada surprises with another rate hike
Markets:Gold down $21 to $1941US 10-year yields up 9.3 bps to 3.79%WTI crude oil up 80-cents to 72.54S&P 500 down 13 points to 4276, or -0.4%Russell 2000 +2.0%, Nasdaq -1.3%CAD leads, NZD lagsIt was a volatile one and there aren't many easy answers to explain the...
Economic calendar in Asia Thursday, 8 June 2023
Japanese economic growth data for the January - March quarter is due today.The flash reading for this is here:Its unlikely to move JPY around. There isn't anything on the data agenda today likely to move FX rates much at all upon release. Watch and listen for...