JP Morgan provide this graph if their analysis of central bank speakers, clearly showing how much hawkish the European Central Bank currently is compared with a relaxing Federal Reserve and Bank of England. Which naturally leads to the view that there are more hikes...
US President Biden has ordered “all available federal firefighting assets” to Canada
US President Biden and Canada's Prime Minister have spoken. The White House says Biden has ordered the deployment of "all available federal firefighting assets" to fight wildfires in Canada.Not FX related, but perhaps some encouraging news for those in eastern areas...
Citi forecasts gold to USD2200 after a dip first
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,...
Asia Day Ahead: Higher Treasury yields triggered profit-taking in Nasdaq overnight
Recommended by IG Get Your Free Top Trading Opportunities Forecast Get My Guide A quiet US economic calendar overnight shifted much of the market focus to the Bank of Canada (BoC), who mirrored the Reserve Bank of Australia (RBA)’s decision this week with a surprise...
China financial regulator says economy still recovering, demand will increase
Li Yunze is Director of China's National Administration of Financial Regulation. Out with some upbeat remarks:economy is still recoveringdemand will be boosted, expandedwill optimise private financing, strengthen financial services for private businessthe recent...
Australian April Exports -5% m/m (prior 4%) & Imports 2% m/m (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,...
South Korea’s fin min says inflation is still high, will be the policy focus for now
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...