The People’s Bank of China once again set the USD/CNY reference rate more than 1100 points lower than the modelled estimate. The difference today was that the Bank set the rate above 7.20 as it conceded, just a little, to market pressure on the yuan. The low setting...
Chinese state media talking up the yuan: recovering economy will return confidence & calm
The People's Bank of China-backed (and hence Chinese Communist Party backed) Securities Times said today in an opinion piece that "The process of economic recovery in the post-COVID era will not be accomplished overnight and it requires policy support," "But with...
ICYMI – Nvidia CEO Jensen Huang sells $42 mn in shares (but its OK)
ICYMI, the report from Benzinga:New filings from the company showed Huang sold shares over the past several trading sessions. Two separate filings from Nvidia revealed Huang exercised stock options in blocks of 29,688 shares with an exercise price of $4. Three...
Head of the San Francisco Fed Mary Daly to speak on Friday
The event doesn't look like it will a venue for Daly to say too much on her economic or monetary policy outlook, but you never know. And, there are always Q&A media questions. We had a barrage of Fed speakers the past 24 hours:Daly is speaking at 11:00 am US...
Poll shows analysts split on an ECB rate hike next week
Reuters polling on what's expected from the European Central Bank at its September 14 meeting:39 of 69 analysts/economists say the ECB will leave its Deposit Rate unchanged at 3.75%30 said the ECB will hike it by 25bps to 4.00%This compares with market p[pricing of...
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The People’s Bank of China is battling to hold the line on the yuan today
The PBOC maintained an 11+ big figure gap between the estimated USD/CNY reference rate and it setting:But it has had to allow the CNY to weaken to over 7.2 to the dollar. As I note each day, USD/CNY is the onshore yuan. Its permitted to trade plus or minus 2% from...
PBOC sets USD/ CNY reference rate for today at 7.2150 (vs. estimate at 7.3284)
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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Morning trade in Hong Kong has been cancelled due to severe weather – Black Rainstorm
HKEX will not trade this morning.Hong Kong Exchange and Clearing is the operator of the city’s stock exchange.Its cancelled morning trade in the securities and derivatives market after the city issued a “Black Rainstorm” warning in the face of torrential rainfall and...
Japanese Fin Min Suzuki says rapid FX moves are undesirable, won’t rule out any options
Verbal intervention efforts from Japanese Finance Minister Suzuki:Rapid FX moves are undesirableWon't rule out any options vs excessive FX movesIts important that FX move stably reflecting fundamentalsUSD/JPY had been dropping lower prior to his comments:These are...
Heads up for Chinese inflation data due over the weekend – August CPI and PPI
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 PBOC is expected to set the USD/CNY reference rate at 7.3284 – 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...
Japan Q2 GDP revised down to 4.8% from 6%
The preliminary economic growth data for the second quarter of 2023 in Japan is here:Japan preliminary Q2 GDP +1.5% q/q (vs. expected +0.8%)Q2 GDP has been revised to +1.2% q/q and +4.8% y/yfrom +1.5% and +6.0% respectivelyThe data confirms weak domestic demand with...
Japan July real wages fall 2.5% y/y, and household spending falls 5% y/y
Data from Japan for July 2023 shows real (that is, inflation-adjusted) wages and household spending both fell. Gotta be a PhD in there somewhere on that relationship, yeah? Or maybe Captain Obvious has it already. July total cash earning +1.3% y/y (prior +2.3%)real...
Fed’s Logan says it could be appropriate to skip an FOMC rate hike at September meeting
Dallas Federal Reserve Bank President Lorie Logan: 'Could be appropriate' to skip interest-rate increase in SeptThere is 'work left to do' to get to sufficiently restrictive policySkipping does not imply stopping rate hikesNot yet convinced we've extinguished excess...
On Wednesday next week we get the US inflation data for August – preview
The biggest event of next week appears to be the US CPI data on Wednesday (sorry ECB Thursday!). Due on Wednesday 13 September at 8.30 am US Eastern time:The 'Expected' column (screenshot above) will be updated next week.Bank of America preview comments, looking for...
BNP has flipped its S&P 500 forecast to end 2023 at 4150, from 3400 previously
Bloomberg with the info from an interview with BNP's head of US equity and derivative strategy.He was previously forecasting a big drop by year-end to 3400 for the benchmark US index. Is now targeting 4150. The new projection is because analysts at the bank now think...
UBS says the global economic story is very clear – disinflation pressures being kept alive
You'll hear constant worry from folks about how uncertain the economic outlook is. Isn't it always? Or, at least, it should be. The real time to worry is when its not uncertain. Which got my spidey senses tingling when I read what UBS say about the economy:In one...
Australian LNG facility plant strikes will begin today, Friday afternoon local time
This re Chevron's Wheatstone and Gorgon LNG facilities.The union representing workers says: Chevron Australia LNG workers to begin planned strikes from 1 pm local time on FridayWhen industrial action commences, plant will be shut down if there are not competent...