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...
Add this to the data agenda today – PBOC MLF announcement due 15 August 2023
Coming up today is the monthly PBOC Medium-term Lending Facility (MLF). The MLF rate is currently 2.65%. Expectations for a cut to the rate are very low, but not zero. A cut is a low but non-negligible chance.Due around 0115 GMT. -The MLF rate is a benchmark interest...
JP Morgan warning on China property sector developments: “may set off a vicious cycle”
JP Morgan analysts have warned that missed payments by a major Chinese shadow lender may trigger a "vicious cycle" for property developers' financing and more delinquencies for trust products. ITCMI, this is in relation to missed payments on multiple high-yield...
Reserve Bank of Australia August meeting minutes today preview – hawkish skew likely
Insightful comments via Mizuho on what to expect from the Reserve Bank of Australia August meeting minutes due at 11.30am Sydney time here in Australia on 15 August 2023 0130 GMT and 9.30pm (Monday evening) US Eastern timeThe RBA's recent Statement On Monetary Policy...
Japan preliminary Q2 GDP +1.5% q/q (vs. expected +0.8%)
Huge beat for Japanese economic growth. Note the Deflator, it's a measure of inflation and its jumped to +3.4%, well above Q1 and what was expected, although I have seen higher estimates elsewhere. The +3.4% q/q is its highest since Q1 of way back in...
Australia data – ANZ Roy Morgan weekly consumer confidence 81.4 (prior 78.2)
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,...
Reserve Bank of New Zealand meet Wednesday – on hold expected – preview
Coming up at 2pm New Zealand time on Wednesday, 16 August 2023 is the RBNZ policy decision. 0200 GMT and 10pm US Eastern time (on Tuesday, 15 August 2023)RBNZ Governor Orr's press conference will follow an hour laterPreview comments via ANZ:We expect the RBNZ will...
Goldman Sachs expects support for risk assets in the months ahead from rates, oil prices
Goldman Sachs relatively rosy view on the US economy, DM central banks' outlook, rates, oil and risk assets:Although most forecasters still predict a recession, we think the runway for a soft landing is in sight. US economic activity remains resilient, the labor...
Nasdaq, S&P500: JP Morgan see a greater chance of a pullback – last week not enough
JP Morgan's Market Intel team are giving a 40% chance to the US stock market pulling back before resuming its trend higher. Up from their previous 35% probability. JPM say that last week's fall does not constitute the pullback they are looking for, but concede they...
Former Dallas Federal Reserve President Kaplan expects FOMC interest rate cuts in 2024
Kaplan was speaking in a US media interview on his outlook for the US economy and Federal Reserve monetary policy. He expects the FOMC will leave Fed Funds unchanged at the September meeting (on the 19th and 20th). As for rate cuts on the way:I think an estimate that...
US Treas Sec Yellen says US inflation is falling, wary of slowing China growth spillover
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 on the best opportunity to buy bonds in a decade
Comments from a CNBC interview with Goldman Sachs Asset Management indicating their preference for bonds over equities right now:“ ... we have seen a lot of volatility when it comes to inflation. But that also creates the opportunity to buy bonds at a real rate that...
HSBC see AUD as oversold but China worries argue against too much of a bounce
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 per month. Get it here. HSBC weighs in on the recent AUD/USD movements, expressing reservations...
Signs of euphoria in Brent, WTI oil forecasts – but challenges ahead to cap the price
A snippet from BMO on the revision higher for oil price projections,:expect the drumbeat of $90 or $100 predictions to pick up in the coming weeksReaching these levels, at least temporarily, is not a tall order given Crude Oil is the most intensely speculated...
Major indices are close higher to start the new trading week
The major US stock indices are all closing higher on the day and to start the new trading week. The gains were led by the NASDAQ index with a rise of 1.05%. The Dow industrial average late with a small gain of 0.07% (thanks to a strong close). Regional banks were the...
Forexlive Americas FX news wrap: China fears fizzle
Markets:Gold down $7 to $1906US 10-year yields up 2.3 bps to 4.19%WTI crude up 64-cents to $82.56S&P 500 up 0.6%, Nasdaq up 1.0%USD leads, EUR lagsComing into the day -- and given all the weekend commentary -- it looked like today might be the day that...
Economic calendar in Asia 15 August 2023 – Data for July from China
The Australian data at 0130 GMT (Q2 wages) will be eyed by the Reserve Bank of Australia as an inflation clue, an acceleration in wages has a tendency to pull prices higher (other factors being equal). At the same time are the minutes of the Reserve Bank of...
Trade ideas thread – Tuesday, 15 August 2023
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,...
Thanks goes to NVIDIA today. Share of NVDA is up 6.5%. Morgan Stanley’s top pick.
Nvidia saves the dayIf you are looking for a savior in the stock market today, it is back to Nvidia whose shares are up $25.73 or 6.3% at $434.21. The low price for the day toyed with the $400 level at $403.11 before jumping to the upside. The catalyst was Morgan...
The battle for US Steel heats up as a second company launches a bid
Weekly US steel chartI've had a low-level interest in steel companies for the past few years, in part because of their sensitivity to the global economy. Also, in part because they reflected a powerful change the began under the Trump administration and has...