Prior 43.9The downturn in the German construction sector intensifies as housing activity posts its sharpest decline since February 2010. Rising interest rates and growing economic uncertainty is weighing on the building sector and new orders is also seen falling at...
What is the bond market saying this week?
Bond yields are pushing higher across the board as traders are continuing to see major central banks tighten further beyond the summer, it would seem. 2-year gilt yields are up 4 bps today to 5.42% - its highest since 2008 - and that sort of sentiment is being shared...
USD/JPY backs away from the 145.00 mark
I would argue that a combination of profit-taking and intervention fears is what is contributing to the latest descend in USD/JPY today. The idea that 145.00 could be the level where Japan steps in to intervene in the currency market is so far enough to put off...
BOE’s Bailey says cannot give a date on when interest rates will start to come down
Expects inflation to fall markedly but it will be hard for borrowers stillAs of now, he also surely can't give a date on when they may be stopping the tightening cycle anyway. So, to talk about rate cuts is a bit premature and a little too far down the road - not...
Germany May factory orders +6.4% vs +1.2% m/m expected
Prior -0.4%; revised to +0.2%Looking at the breakdown, domestic orders rose by 6.2% and foreign orders by 6.4%. The sharp increase is largely to do with large-scale orders, which may be a one-off, as the manufacture of other transport equipment was seen up by 137%...
Trade ideas thread – European session 6 July 2023
The dollar and yen are holding in good spots since trading yesterday, with the latter pushing gains in the new day with USD/JPY even falling to 143.75 at the moment. The drop back below 144.00 is giving sellers some added room to work with, as buyers are feeling...
BOE’s Bailey: There is evidence some retailers are overcharging customers
Moves by regulators on retail prices will help to lower inflationWell, he better be praying really hard that he is right on this one. Because now with markets now looking at 6% rates and growing stagflation risks, the BOE isn't exactly in a comfortable spot at the...
SNB’s Maechler: Further rate hikes cannot be ruled out
It cannot be ruled out that we will need to further hike interest ratesThis comes despite the June inflation figure falling back to the SNB's target for price stability, which is defined between 0% and 2%. The data in the next few months is going to be key in...
Gold Slips After FOMC Minutes; XAU/USD Scenario Ahead of US Jobs Data
Gold, XAU/USD – Outlook:XAU/USD fell after minutes of the FOMC meeting in June reinforced expectations of higher interest rates.XAU/USD’s slide appears to be losing steam ahead of US jobs data due Friday.What are the levels to watch in XAU/USD? Recommended by Manish...
Equities mood continues to struggle ahead of European trading
The return of Wall Street yesterday didn't inject much optimism into markets as it seems growth worries are starting to weigh again. The Fed minutes also hinted that a July rate hike is likely on the cards, but that shouldn't be anything new to markets in general....
FX option expiries for 6 July 10am New York cut
There is one to take note of, as highlighted in bold.That being for USD/JPY at the 144.00 mark, which could be a reason for the drag in price action at the moment with price falling to around 144.09 currently. The pair is down 0.4% on the day with not much else going...
A couple of light releases coming up in the session ahead
The dollar saw a decent bid in trading yesterday, backed by softer risk sentiment in markets. Equities held lower upon the return of Wall Street and we are seeing that negativity persist to today. US futures are down roughly 0.3% and the greenback is once again...
More on China’s state media commentary on tools to deal with ‘panic’ yuan sell off
It's a mystery to me why the People's Bank of China would be referring to a panic sell in yuan, and yet here we are:It's a surprising remark, intended to calm fears over further rapid selling of the RMB and stabilize the currency. For today CNH has been showing signs...
ForexLive Asia-Pacific FX news wrap: USD/JPY a little lower on the day
Session wrap Forex news for Asian trading on Thursday, 6 July 2023 <!--> Eamonn Sheridan Thursday, 06/07/2023 | 03:00 GMT-0 06/07/2023 | 03:00 GMT-0 --> It was a narrow range day for major FX during the Asia session. The data agenda was very light, with a...
Germany’s Bundesbank President (and ECB Governing Council member) Nagel speaking Thursday
Germany's Bundesbank President (and European Central Bank Governing Council member) Nagel is speaking on Thursday, 6 July 2023. 1600 GMT/1200 US Eastern time Nagel speaks at the DEKRA Dialog eventDEKRA is a global vehicle inspection company based in Germany, known for...
RBA is expected to hike by +25bp in August according to 23 of 25 analysts – Reuters poll
The next Reserve Bank of Australia meeting is August 1. Reuters polled 25 analysts, 23 expected a +25 bp rate hike, to 4.35%2 expect a pause 10 of 22 expect the RBA to raise rates once more in September, taking rates to 4.60% by the end of this quarter. The other 12...
Federal Reserve speakers today include Dallas branch President Logan
Federal Reserve Bank of Dallas President Lorrie Logan is the only Fed speaker I have on the agenda. Perhaps others will pop up in media interviews.At 1245 GMT/ 0845 US Eastern time Logan participates in the "Policy Challenges for Central Banks" panel before the 2023...
JP Morgan say there’s a risk that the Bank of England will push interest rates to 7%
JP Morgan economists say their central forecast is a rise to 5.75% (hitting there in November) but warn there are 'potential upside to rates if expectations do become unanchored or remain high'. Which could force the BoE to lift to 7% and precipitate a hard landing...
Australian exports in May +4% m/m (prior -5%) & Imports +2% (prior +2%)
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 reference rate of 7.2098 is much lower than the 7.2510 expected
The reference rate setting is here:Which is another mid-rate way below what was expected. In open market operations (OMOs) the PBOC injects 2bn yuan via 7-day reverse repos (RRs) at an unchanged rate of 1.9% 193bn yuan of RRs mature today thus a net 191bn yuan drain...