While not specifically a forecast for this week's Bank of Japan meeting (statement due Friday 22 September around 0230 to 0330 GMT) UBS on what's ahead from the Bank and the implications for the yen:Ultra-easy monetary policy could end in Japan sooner than expected....
China Evergrande shares dump 25% in HK after police detained some wealth management staff
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,...
EUR/USD danger zone for further losses just under 1.0635
A note from Scotia late last week with a level to watch in the euro.In brief:EUR sentiment has been weighed by soft economic data from the Eurozone and signs from the ECB that its policy tightening cycle is complete. An overhang of long EUR positioning among investors...
PBOC sets USD/ CNY reference rate for today at 7.1736 (vs. estimate at 7.2707)
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...
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Singapore August exports fall more than expected
Singapore Non-oil Domestic Exports (NODX) in August 2023:-3.8% m/m vs +5.5% expected-20.1% y/y vs. -15.8% expected Electronics and non-electronics exports to the United States, Europe and China declined the cited reasoning. --Singapore Non-oil Domestic Exports (NODX)...
New Zealand economists expect 2023/24 GDP at 0.4%, from 0.6% previously – NZIER survey
The latest New Zealand Institute of Economic Research (NZIER) Consensus Forecasts in brief:Annual average GDP growth is forecast to slow to 0.4 percent in the year to March 2024 before recovering to just 1.1 percent in 2025. Higher interest rates are starting to...
PBOC is expected to set the USD/CNY reference rate at 7.2707 – 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...
Former JPMorgan gold trader sentenced to 6 months in prison on spoofing charge
A former JPMorgan gold trader was sentenced to serve six months in prison on Friday. A Chicago judge handed down the sentence in relation to the placement of deceptive orders between 2008 and 2010. As background, poofing involves placing large buy or sell orders with...
UK data – Rightmove House Price Index +0.4% m/m (prior -1.9%)
The Rightmove House Price Index is a gauge of asking prices for UK homes.It picked up in September to +0.4% m/mprior -1.9%for the y/y -0.4%prior -0.1%Comments from the report for the month in summary:BoE's 14 consecutive interest rate rises contributed to unusually...
US Auto Workers strike continues. A 21% pay increase was made and rejected.
The strike by the US United Auto Workers is ongoing. The latest is that the union is rejecting an offer from one of the Big Three automakers, Chrysler parent Stellantis, for a 21% wage increase:a cumulative 21% wage increasewith an immediate 10% increase upon a formal...
Brent – the oil price is “exposed to further price spikes in 2024”
Summary comments from ANZ on oil, saying that conditions are in place for even higher prices into year end and 2024.On the supply side:Production cuts, led by Saudi Arabia, stabilised the market in July but are now likely to push the market into a 2mb/d deficit in Q4....
New Zealand Services PMI for August 47.1 (prior 48.0)
The BNZ – BusinessNZ Performance of Services Index (PSI) for August 2023 comes in at 47.1, back to levels last seen in January 2022prior 48.0third consecutive drop in activity levelslong-term average is 53.5 BusinessNZ chief executive Kirk Hope:August result showed...
USD/JPY has closed its gap made on BOJ Gov Ueda’s comments on potential change of policy
It was last Monday that FX markets got their first chance to respond to remarks from Bank of Japan Governor Ueda. ICYMI, summary here:Governor Ueda's hawkish hints last weekend seem like a long time ago now. While USD/JPY closed its gap and climbed to highs of the...
Chinese police detain Evergrande’s wealth management staff
Evergrande is one of China's massively indebted property developer firms in the maelstrom of a property market crisis that is dragging on China’s economic growth. The group is undergoing a restructuring plan, including offloading assets, to avoid defaulting on $340...
China’s weak yuan has cost already troubled Chinese property developers $3bn
Property development firms in China borrowed in US dollars and thus the slide in the yuan against the dollar has increased these firms debt repayments. Nikkei Asia calculate mainland Chinese property developers registered close to us$3 billion in foreign exchange...
Week Ahead highlights include lots of central banks – FOMC, PBoC, BoJ, BoE among them
MON: Japanese Holiday; Canadian Producer Prices (Aug)TUE: RBA Minutes (Sep); EZ Current Account (Jul), US Building Permits/Housing Starts (Aug), Canadian CPI (Aug)WED: FOMC, PBoC LPR, Banxico & BCB Policy Announcements, BoC Minutes (Sep); Japanese Trade Balance...
French government plans to allow the sale of fuel at a loss to help contain inflation
The Prime Minister of France Elisabeth Borne spoke in interview and dropped the news in that the government plans to allow gas stations to sell fuel at a loss. A 1963 law prohibits this but that law will be overridden for a period a limited period of a “few months.”...
Weekend – Goldman Sachs strategists expect a Federal Reserve spoof at this week’s meeting
Goldman Sachs are expecting the Federal Open Market Committee (FOMC)'s 'Dot Polt' to indicate that the majority on the Committee will indicate one more Fed Funds interest rate rise this year. GS write that they expect "a narrow 10-9 majority still pencilling in one...
Economic calendar in Asia Monday, 18 September 2023 – Tokyo closed
Japanese markets are closed for a holiday today.This will sap some liquidity for FX markets and also shut cash US Treasury trade. Apart from that, it's a thin calendar also, will little here to move around major forex rates: This snapshot from the ForexLive economic...