Li Daokui is a former member of the People’s Bank of China monetary policy committee from 2010 to 2012. He’s currently director of the Academic Center for Chinese Economic Practice and Thinking at Tsinghua University in Beijing. Was speaking in an interview. Sales in...
PBOC sets USD/ CNY reference rate for today at 7.1727 (vs. estimate at 7.3174)
The 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...
Fed’s Kashkari says there is still more to be done on services inflation
Federal Reserve Bank of Minneapolis President Neel Kashkari is participating in a question-and-answer session hosted by the Wharton Central Banking Club:Still more work to do on services inflationFed can definitely get back to 2% inflationMay need to cut rates if real...
PBOC is expected to set the USD/CNY reference rate at 7.3174 – Reuters estimate
The actual rate the People's Bank of China set the onshore yuan at will be nowhere near that modelled estimate. The Bank has been leaning on the daily fix to support the yuan. Yesterday's reference rate, for instance, was 7.1727. The fix today won't be too far from...
JP Morgan says ‘higher for longer’ worries markets. Also don’t understand frogs.
A note from analysts at JP Moran on developed market central banks apparently having reached the top of the rate hike cycle, or at least in a 'pause'. However, adds JPM, the promotion of a 'higher for longer message from the Banks is a worry for markets. Our "boiling...
Japan data – August PPI Services (Corporate Services Price Index) 2.1% y/y (expected 1.8%)
August PPI Services (Corporate Services Price Index) 2.1% y/y expected 1.8%, prior 1.7%Japan Services Producer Price Index (PPI) measures the average change over time in the prices received by service providers (in the private sector) for their services in JapanData...
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Australian Weekly ANZ Roy Morgan Consumer Confidence survey slumps to 76.4 (prior 79.8)
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,...
China Golden Week holidays coming up – surging travel will boost demand for oil
China will be out on Friday September 29 for a national holiday, and then will also be out on Monday to Friday (inclusive) the following week (October 2 - 6). ANZ comments on oil implications:China’s oil demand is set to get another boost from the Golden Week holiday...
Inflation data is due from Australia mid-week – preview
Australia's monthly CPI data is due on Wednesday, 27 September 2023:Comments via Commonwealth Bank of Australia on what the Reserve Bank of Australia is watching:The August figure will provide updates on how market services inflation, with key categories like...
Goldman Sachs 4 reasons higher oil prices merely a “manageable headwind” for US economy
Goldman Sachs says that while a sustained climb in oil prices could slow consumption and economic growth it will be a "manageable headwind" for the U.S. economy."While we forecast consumption growth to slow during the fall and winter, we think higher oil prices are...
Bank of Japan intervention in USD/JPY usually results in an initial 500 point drop
TD on verbal intervention that we are currently seeing:Ministry of Finance (MOF) officials (e.g., Suzuki, Matsuno) repeated the JPY jawboning ... in a warning to speculators that imminent intervention is on the table, especially with USD/JPY on a path towards 150. And...
Nomura, JP Morgan both tip a higher USD/yuan (USD/CNH)
Nomura are tipping a still higher US dollar, citing the September "Higher for longer" rates viewpointof the Federal Open Market Committee (FOMC)and continued equity and bond outflows from China to persist in pressuring the yuanNomura see a higher USD/CNH, and this is...
Chevron chair/CEO says oil price going above $100 – “It’s fundamentally supply and demand”
Chevron chairman and CEO Mike Wirth spoke in a US TV interview, CNBC, on Monday. He pithily wrapped up what's driving the price higher:We’ve seen a global economy that is continuing to do pretty well. We’ve seen some production cutbacks in some of the OPEC countries...
Forexlive Americas FX news wrap: USD/JPY follows yields higher once again
Markets:Gold down $10 to $1915WTI crude oil down $0.10 to $89.94US 10-year yields up 10 bps to 4.54%S&P 500 up 0.45%CAD leads, EUR lagsThe bond market continues to wilt and that helped USD/JPY break last week's highs and continue up to 148.97. It's probably no...
US stocks close near highs for the session.
US major stock indices closed near highs for the session. The gains come despite higher yields in the US where the 10 year yield rose nearly 11 basis points and the thirty-year was of 14 basis points.Both the broader S&P and NASDAQ index have been down for 3...
Economic calendar in Asia Tuesday, 26 September 2023 – a light one
It's a light data agenda ahead, but there should be some interesting items from the Reserve Bank of Australia. The calendar:And from the Reserve Bank of Australia:I'm not sure what to expect from this! Should be something of interest though. There will be more on...
WTI crude oil settles at $89.68. What are the technicals saying?
Crude oil prices remained settled at $89.68 today. That was down $-0.35 or -0.39%. The high today reached $90.83. THe low was at $89.03. Russia lifted some export bans, but restrictions on gasoline and high-quality diesel persist. Chevron plans to increase its oil...
The best FX trade so far this year is a reminder of the power of fundamental simplicity
GBP/JPY this yearThe third quarter is winding down and that beckons a look at what has unfolded so far in the forex market in 2023. At the top of the FX-trading charts is long GBP/JPY. It's a classic carry trade and it worked as well as ever this year as a global...
US 10 year yield/30 year yields make new highs
Both the US 10 and 30-year yields are stretching to new highs.The 10-year yield has just reached 4.535%. The low for the day was 4.45%. The new high represents the highest level since October 2007.The 30 year yield just reached 4.653%, which is the highest level since...