- Forex news for Asian trading on Monday, 17 July 2023
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- Goldman Sachs expects the Bank of England to hike by 50bp at its August meeting
- China Q2 GDP +0.8% q/q (expected 0.5%)
- China June: Retail sales +3.1% y/y (expected 3.2%) Industrial output +4.4% y/y (exp 2.7%)
- Hong Kong exchange has cancelled all Monday trading due to Typhoon
- People’s Bank of China set MLF rate at unchanged 2.65%, as expected
- PBOC sets USD/ CNY mid-point today at 7.1326 (vs. estimate at 7.1386)
- ICYMI – BlackRock CEO Fink said US inflation likely to be sticky now, stay above 2% target
- The goldilocks price for oil is around US$70 per barrel.
- IMF says that while core inflation is well above targets, inflation appears to have peaked
- Singapore non oil domestic exports (NODX) ins June +5.4% m/m (+5.9% expected)
- UBS forecast EUR/USD to 1.18 (12 month horizon)
- Bank of America says the recent USD selling may be an over reaction
- New Zealand data – June services PMI 50.1 (prior 53.3)
- Russia has seized shares of Danone and Carlsberg subsidiaries
- Japan finance minister says there was ‘No discussion’ of exchange rates at G7.
- Chinese June activity data & Q2 GDP due today (GDP expected to be inflated by base impact)
- Black Sea grain deal has not been extended as of now, but everything is possible says TASS
- Weekend China data – New home prices unchanged in June, weakest result this year
- JPY traders (and others) – it’s a Japanese market holiday today
- Australian Treasurer Chalmers sees substantial economic slowdown, jobless up, CPI down
- Trade ideas thread – Monday, 17 July 2023
- Monday morning open levels – indicative forex prices – 17 July 2023
- Newsquawk Week Ahead: China activity data, PBoC LPR, US retail sales, UK, NZ, & Canada CPI
- The US dollar fell sharply last week before consolidating on Friday.What next technically?
- Weekly Market Outlook (17-21 July)
- Forexlive Americas FX news wrap 14 Jul. USD rises today but down for the week
Eyes
were on China yet again with
- the
People’s Bank of China setting the Medium-term Lending Facility
(MLF) rate – at an unchanged 2.65% - June
economic activity data – coming in mixed - Q2
GDP data – coming in better than expected on a q/q basis but not on
a y/y basis
The
net impact of all the economic events from China was subdued, with
major FX trading small ranges only. This was also partially due to a
Japanese market holiday. Hong Kong markets were out as well, with
trade on the HKEX stopped for Monday due to a severe typhoon warning.
News
flow was light. Traffic was stopped on the Crimea/Russia bridge due
to an “emergency” said Russian sources; while Ukrainian
media reported explosions were heard. Reports are that one span of
the bridge is down while another is damaged.
Asian
equity markets:
-
Japan’s Nikkei 225 -0.1%
-
China’s Shanghai Composite -1.1%
-
Hong Kong’s Hang Seng… closed due to typhoon warning
-
South Korea’s KOSPI -0.3%
-
Australia’s S&P/ASX 200 -0.05%
USD/JPY ticked a little lower.
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