- ECB speaker on Tuesday, 10 January 2023 - Schnabel
- China's ambassador to Australia - up to firms to decide if to import Australian coal
- Chinese state media says President Xi warned officials against "collusion" with business
- Chatter of another sales tax hike in Japan won't go away
- Morgan Stanley have boosted their China 2023 GDP forecast to over 5%
- China’s ambassador to Australia says relationship reset, constructive
- China considers record quota for special local government bonds this year, wider deficit
- UK jobs survey shows wage growth slower growth and vacancies slip in December
- PBOC sets USD/ CNY central rate at 6.7611 (vs. estimate at 6.7613)
- Bank of England Governor Bailey is speaking Tuesday, 10 January 2023
- UK Times on BoE's Pill speech - 4 reasons inflation will persist
- UK Retail sales data for December come in better than November
- BOE chief economist Huw Pill speech - full (hawkish) text
- JP Morgan is expecting China's reopening to add around 1% to Australian economic growth
- Japan data - December Tokyo area CPI, core core is +2.7% y/y
- Japan data - November household spending -1.2% y/y (prior 1.2%)
- Goldman Sachs says US inflation is slowing ... "sharply"
- Australia weekly consumer confidence survey jumps to its highest since September 2022
- Manchester United, Liverpool or Spurs soccer clubs may be buyout targets for Qatar Fund
- Goldman Sachs forecasts USD/JPY to 126 (12 month horizon), from 130 previously
- Oil ICYMI: China adds a further batch of 2023 import quotas, up 20% from this time in 2022
- Trade ideas thread - Tuesday, 10 January 2023
- The major stock indices close mixed
- Forexlive Americas FX news wrap: US dollar slump continues as yields slide
With heightened attention being paid to Bank of Japan policy and the potential for a shift/tweak in the coming months, the data points of focus today were the Tokyo inflation rates for December. Tokyo’s inflation is seen as a guide to the whole of Japan inflation print which will be released on Friday January 20, local Japan date (Thursday evening the 19th GMT and US Eastern time).
Headline and ‘core’ (excluding food) inflation came in at 4% y/y, while the core-core (excluding food and energy and the closest to US core CPI) came in at 2.7% All well above the Bank of Japan 2% target. As they have been for many months now. The BOJ expects these numbers to fall from around October this year. Or so they keep telling us.
USD/JPY traded in a choppy fashion, as high as around 132.21 then to lows touching circa 131.39. Its mid-range as I update.
Eyes also on China where there was little fresh news (its still just the middle of the day there, so stay tuned).
Major FX was rangebound awaiting the Fed boss. Federal Reserve System Chair Powell is speaking Tuesday at 9am New York time, 1400 GMT. Powell has been hawkish in recent comments while past days have seen markets reprice a touch more dovish. Ears will be open for what Powell has to say.
Regional
stocks were mixed and not a lot changed. Japan reopened after a holiday Monday, the Nikkei225 is +0.7%
Other Asian equity markets:
China’s Shanghai Composite -0.2%
Hong Kong’s Hang Seng -0.5%
South Korea’s KOSPI more or less unchanged at -0.03%
Australia’s S&P/ASX 200 -0.3%
Chop for USD/JPY:
