Data from New Zealand for Q2 2023:BoP Current Account Balance -4.2bn NZDexpected -4.56bn, prior -5.22bn Current Account to GDP YTD -7.5%expected -8.0%, prior -8.2%The current account represents the most comprehensive gauge of a nation's international financial...
UBS on Brent oil – strong fundamentals to support a $90–100/bbl range in coming months
A UBS analyst note on the oil price says their base case is that the price will not rise above $100 a barrel on a sustained basis over the next year. Such a rise would draw a step higher in US production as well as weighing on demand. UBS on supply factors:Saudi...
Japan’s PM Kishida to allow overseas asset management firms’ entry to domestic market
The headlines on this from yesterday are here:Details have slowly trickled out ahead of Kishida's announcement, adding some info now via Nikkei:Japanese Prime Minister Fumio Kishida is scheduled to speak at the Economic Club of New York on ThursdayHe will urge...
US Treasury Secretary Yellen warns over potential yen intervention
Intervention to streWide-ranging comments from Yellen. On potential intervention in the yen FX market: Treasury generally understands need to smooth out volatility in exchange rates but not to influence forex levelsView on any Japanese yen intervention would depend on...
Magnitude 5.7 earthquake hits South Island region of New Zealand
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,...
JP Morgan says price of oil could rise to US $120 because supply cuts may not be over
JP Morgan flagged a big risk for the global economy, saying the concern is that cuts to the supply of oil "are not finished". JPM say this could see the oil price as high as US$120 / bbl.And that the flow-on effect if this were to happen in the next few weeks would be...
South Korea wholesale level inflation surging again, biggest jump since April 2022
South Korea PPI data for August has risen at its fastest m/m since April of 2022.+0.9% m/m (prior +0.3%+1.0% y/y (prior -0.3%)There is probably plenty more of this to come around the globe and for the months ahead as oil and other commodity prices rise. MoneyMaker FX...
Forexlive Americas FX news wrap 19 Sep: One more sleep until the FOMC decision.
The FOMC rate decision is "one sleep away" and less than 24-hours away. The decision will take place at 2 p.m. The expectation is for no change in the target range of 5.25% to 5.5%. The question that traders will be answering is "Will the no change be more hawkish or...
Wall Street Journal: The Fed’s Next Challenge: $100 Oil
An article in the Journal (gated) ahead of Wednesday's FOMC. Not flagging a Fed Funds rate hike this time around, but further head?traders and petroleum refiners are draining oil stockpiles at a rapid clipMany analysts expect crude prices to keep rising, which would...
Oil – private survey of inventory shows much larger draw than was expected
This is from the privately surveyed oil stock data ahead of official government data tomorrow morning out of the US.This massive draw should be a tailwind for the price of oil. Via Twitter:--Expectations I had seen centred on:Headline crude -2.2mn barrelsDistillates...
US major indices close lower but it could’ve been worse
The major US indices are closing low on the day, however, indices or lower on the day before rebounding into the close. Equity markets are a bit anxious before the FOMC rate decision tomorrow at 2 PM ET. Yields also provided a headwind with the 10-year yield now up...
Economic calendar in Asia 20 Sep 2023: People’s Bank of China interest rate setting (LPRs)
The Loan Prime Rate settings from the PBOC are the focus of the calendar for the session ahead. This'll happen around 0115 GMT, which is 9.15 pm Eastern Time Sunday US time. Last week the PBOC's Medium-term Lending Facility (MLF) rate was left unchanged:An unchanged...
US yields doing the Fed’s fight for them
The U.S. Treasury auctioned off $13 billion of 20 year notes today with strong domestic demand. The bid to cover was well above the 6 month average. Nevertheless, yields have continued to move higher and are trading near the highs for the day.A snapshot the market...
Trade ideas thread – Wednesday, 20 September 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,...
US 5-year yield reaches the highest level since 2007
5 year yield trades at the highest level since 2007The US 5-year yield has reached 4.513%. That takes the yield to the highest level since August 2007. Looking at the weekly chart, the next part comes in at 4.875% followed by the swing high going back to 2006 at...
Bank of Canada’s Kozicki: Big drivers in August CPI inflation was energy & gasoline prices
Bank of Canada Deputy Gov. Sharon Kozicki is speaking and says:One of the big drivers in August CPI inflation was energy and gasoline prices. They can be pretty volatileIt will take a lot of time to sort through the inflation data, given what's going on...
WTI crude oil futures settle at $91.20.
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,...
The EURUSD is centering itself between hourly MA levels. Fed decision 24 hour away.
The FOMC is expected to keep rates unchanged tomorrow when they meet. As such, traders will be looking for clues for a more hawkish unchanged policy or a more dovish unchanged policy. There are a lot of balls in the air including sticky inflation, but core inflation...
Former Fed Pres Lockhart: The Fed is likely to pause tomorrow
Former Fed Pres. Lockhart on CNBCFormer Atlanta Fed Pres. Dennis Lockhart is on CNBC and says:Fed likely to pauseFed will likely be more neutral Longer rates are taking on the expectations of a soft land and benign view of the futureI expect the Fed to stay higher for...
The US Treasury auctions off $13B of 20 year notes at a high yield of 4.592%
WI level at the time of the auction: 4.592%High Yield: 4.595%Previous: 4.499%Six-auction average: 4.055%Tail: -0.3bpsPrevious: 0.9bpsSix-auction average: -0.2bpsBid-to-Cover: 2.74XPrevious: 2.56xSix-auction average: 2.64xDealers: 9.27%Previous: 11.4%Six-auction...