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,...
Kiwibank: “Closing the chapter on rate hikes. The RBNZ is now on hold.”
A note from KiwiBank in NZ on the Reserve Bank of New Zealand. In brief:The RBNZ delivered a 25bp hike and left the peak in the OCR at 5.50%. The May meeting signalled the peak in the tightening cycle. The next move is a rate cut, but not for a while yet. The RBNZ...
There are no central bank speakers scheduled from Europe or the US on Monday, 29 May 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,...
ForexLive Asia-Pacific FX news wrap: Biden, McCarthy agree a debt deal
The big news to kick off the week was the debt limit agreement reached over the weekend in the US:The news acted as support for risk asset trades. Moves were not large, however US equity index futures are higher to begin the new week while the USD is a little weaker....
Goldman Sachs says if the US debt limit agreement passes Congress it trims GDP slightly
The debt limit agreement ICYMI:And, responses.follow-ups:Goldman Sachs assesses that if the deal passes Congress by June 5, which means the US avoids a default, the reduction in federal spending would trim US GDP by just 0.1% next year.Other analysts, Moody's for...
Gold Price Dented by US Dollar Rally with Higher Yields as Debt Ceiling Woes Recede
Gold, XAU/USD, Treasury Yields, Real Yield, US Dollar, Fed, Debt Ceiling - Talking PointsThe gold price has succumbed to US Dollar strength of late with the Fed in focusTreasury yields and real yields continue to elevate and might add to dollar demandIf Washington...
ICYMI: Oil – Wall Street Journal says “Tensions are rising between Saudi Arabia & Russia”
The Wall Street Journal (gated) cites unnamed sources for the info:Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries, has expressed its anger to Russia for not following through fully on its pledge to throttle production in...
Japan says its ordered preparation for destruction of any North Korean missile
Japan defence ministry says it ordered preparation for destruction of any North Korean missile Says order is in response to North Korea's planned launch of what it says is a satelliteSays order for destruction would be for any North Korean missile that is confirmed to...
PBOC sets USD/ CNY reference rate for today at 7. 0575 (vs. estimate at 7.0574)
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...
UBS expect a Reserve Bank of Australia rate hike in July
Catching up on this snippet from UBS last week on the RBA. UBS note the RBA minutes mention the RBA will engage in passive quantitative tightening (QT). QT is when central banks reduce their balance sheets by actively selling assets. 'Passive' QT is allowing holdings...
PBOC is expected to set the USD/CNY reference rate at 7.0574 – 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...
Warnings in China over “negative down payments” for home, property buying,
China's Global Times carried this piece over the weekend, in brief: Some real estate agencies have been marketing homebuying with "zero down payment" or "negative down payment" so that consumers not only don't need to pay for down payment but also can obtain funds for...
Weekend data – China Industrial profits in April down 18.2% y/y (March was -19.2% y/y)
Data from China's National Bureau of Statistics (NBS) released over the weekend. Profits at China’s industrial firms in April -18.2% y/yprior -19.2%For the YTD. ie. January - April, down 20.6% y/yprior (January - March) -21.4%Margin pressures, soft demand & a...
US President Biden is delivering remarks on the debt limit agreement – “Good news”
Adam had the earlier breaking events:US President Biden is speaking from the White House now. There is very little of substance so far.Says he spoke with Speaker McCarthy and that they reached a bipartisan agreementGood news for the American peoplethe agreement...
Heads up for US President Biden about to speak on debt limit agreement
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,...
BoA says an FOMC rate hike in June is a close call, Fed needs 3 conditions to be met
This 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. Bank of America (BofA) has reaffirmed its base case expectation that the Federal...
ICYMI: IMF has told the Federal Reserve to hike more, and quickly, and then hold ’em high
The International Monetary Fund released its United States of America: Staff Concluding Statement of the 2023 Article IV Mission report on Friday. Adam had the rundown, a picture of stumbling growth and inflation slowly returning to target.The report said tha the...
Weekend – Fed’s Goolsbee welcomed news of a deal on US debt ceiling
The news ICYMI:Federal Reserve Bank of Chicago President Austan Goolsbee expressed optimism in an interview on CBS's "Face the Nation"."If you did not do that, the consequences for the financial system and for the broader economy would be extremely negative" "Even the...
Economic calendar in Asia for 29 May 2023 is empty, & a heads up for a Europe & US holiday
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,...
Trade ideas thread – Monday, 29 May 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,...