People's Bank of China policy rate settingCurrent LPRs, which have unchanged for 9 consecutive months:3.65% for the one yearmost new and outstanding loans in China are based on the one-year LPR4.30% for the five yearmost home mortgage rates are based on the...
PBOC sets USD/ CNY reference rate for today at 7.0157 (vs. estimate at 7.0141)
Earlier: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...
White House official says teams will keep working on debt ceiling issues Sunday night
Just an update on the US debt limit negotiations.Biden and McCarthy are to meet Monday, US time. Underlings from the two sides have been meeting Sunday afternoon/evening in Washington. Now a statement from White House Adviser Richetti says that work will continue...
Nomura is looking for a stronger US dollar in the near term
A snippet via Nomura on the dollar. Analysts at the firm cite global economy woes manifesting:European and Chinese data surprises are in free-fall. ZEWs, IP, Factory orders and retail sales have really pushed the euro area data surprise to big lowsWhich is reason...
PBOC is expected to set the USD/CNY reference rate at 7.0141 – 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...
Japanese capex leading indicator (machinery orders) fell m/m in March
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 expect a pause at the June Federal Open Market Committee (FOMC) meeting
Following Federal Reserve Chair Powell's remarks on Friday last week:A snippet from Goldman Sachs:Powell noted that the FOMC had “come a long way in policy tightening”This week's comments from the Fed leadership are consistent with our expectation for a pause at the...
Barclays wary of S&P500 bullishness – citing mega cap inflation
Via a note from Barclays, in brief. Analysts there are nervous over 'mega-cap' stocks inflating the index, which intensified after the banking crisis.“Mega-cap outperformance is not unusual in historical instances of heightened stress, so Big Tech multiples could see...
Fed’s Kashkari is open to a June FOMC rate hike pause, but not convinced done yet
An article in the Wall Street Journal (gated), written by Fed insider Nick Timiraos re comments from Federal Reserve Bank of Minneapolis President Neel Kashkari Main points:“I’m open to the idea that we can move a little bit more slowly from here,” “I would object to...
Reserve Bank of New Zealand Shadow Board splits over rate hike this week, 0bp vs. 25 vs 50
The Shadow Board are divided over their recommendation to the Reserve Bank of New Zealand at Wednesday's meeting. In brief from the NZIER report:The Shadow Board is divided over whether the Reserve Bank should increase the Official Cash Rate (OCR) in the May Monetary...
BoA says the S&P500 is a sell – buyers being ‘sucked in’ ahead of a hard landing
A snippet from a Bank of America strategist on the US benchmark equity index:Looking circa 4200 says “we still fade” around here as the index has been nudging up against that level a few time this year with no significant break above:on the latest test of the level -...
US debt limit negotiators have recommenced talks
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,...
Economic calendar in Asia Monday, 22 May 2023 – People’s Bank of China rate setting day
People's Bank of China's Loan Prime Rate setting.Last week the MLF rate was left unchanged which is usually a good indication that the LPRs will be left untouched.Current LPRs, which have unchanged for 8 consecutive months:3.65% for the one yearmost new and...
Trade ideas thread – Monday, 22 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,...
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Goldman Sachs says debt limit drop dead date is June 8 or 9
Yellen said June 1 again:economists at Goldman Sachs are saying June 8 or 9, by then the US cash levels of the US government are estimated to drop under the $30bn it has signalled as a bare minimum for meeting federal obligations.GS info comes via gated Bloomberg...
US Treas Sec Yellen reaffirmed June 1 as the “hard deadline” to raise the debt ceiling
Yellen spoke on Sunday in the US in an interview on NBC’s “Meet the Press”:“I indicated in my last letter to Congress that we expect to be unable to pay all of our bills in early June and possibly as soon as June 1. And I will continue to update Congress, but I...
China bans Micron products, cites “significant security risks” to “national security”
China's cyberspace regulator banned products made by U.S. memory chip manufacturer Micron Technology from use in key infrastructure. The chip ban could cover sectors ranging from transport to financeIn a statement on Sunday the Cyberspace Administration of China (CAC)...
Lagarde: ECB not done yet, not pausing, “inflation outlook is too high and for too long”
European Central Bank President Lagarde spoke with Dutch media on Sunday, reiterating more hikes yet to come from the Bank. “I think we covered a large chunk of the journey toward taming inflation and bringing it back to our target,” “We are not done yet, we are not...
Monday morning open levels – indicative forex prices – 22 May 2023
On a Monday morning, market liquidity is very thin until it improves as more Asian centres come online. Prices are liable to swing around on not too much at all, so take care out there.Indicative rates:EUR/USD 1.0809USD/JPY 137.98GBP/USD 1.2449USD/CHF 0.8996USD/CAD...