- People's Bank of China official comments on monetary policy, liquidity provision
- China's SAFE (FX regulator) says cross border capital flows are generally stable
- Assassination attempt on Argentina Vice President President Cristina Fernandez de Kirchner
- US State Department says that Iran's response to nuclear deal 'not constructive'
- Japn finmin Suzuki says will take action on FX if necessary
- BoA like the yen (someone has to I guess) - forecast USD/JPY to 120
- PBOC sets USD/ CNY mid-point today at 6.8917(vs. estimate at 6.9202)
- Japan chief cabinet secretary Matsuno tries to talk up the yen
- The estimate for the USD/CNY reference rate setting from the PBOC today is above 6.92
- South Korea's central bank forecasts inflation staying at 5 to 6% for some time
- Poll of analysts - RBA to hike its cash rate by 50bp on Tuesday 6 September
- Non-Farm payroll (NFP) preview
- BCC says the UK is already in a recession
- South Korea core inflation (August data) is rising at its fastest since February 2009
- NZ data - Q2 Terms of trade index -2.4% q/q (expected -1.3%)
- Iran says its submitted a constructive response to finalize revival of the nuclear deal
- USD/JPY above 140, get ready for (ineffective) talking intervention out of Japan today
- US non-farm payrolls data due Friday - Goldman Sachs' estimates
- ICYMI on China COVID: Chengdu and its 21 million population enters lockdown
- More on Goldman Sachs forecasting a 75bp rate hile from ECB next week
- Trade ideas thread - Friday, 2 September 2022
- Fed's Bostic says the Bank must slow down the economy
- Forexlive Americas FX news wrap: ISM manufacturing hits a goldilocks note
- Dow and S&P snap 4 day losing streak. Nasdaq not so lucky
Major FX moved in small ranges during the timezone here today. The focus is on getting the US non-farm payroll report out of the way, its due at 1230 GMT and there are previews in the points above.
- This snapshot from the ForexLive economic data calendar, access it here.
- The times in the left-most column are GMT.
- The numbers in the right-most column are the 'prior' (previous month/quarter as the case may be) result. The number in the column next to that, where is a number, is the consensus median expected.
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USD/JPY dipped briefly under 140 but soon found a bid again. This came despite multiple officials in Japan weighing in with statements seeking to support the yen (again, in the points above). Traders just shrugged these off.
Early in the Asia morning we had reports out of Iran that they had sent in what they said were constructive proposals to finalise the nuclear deal talks. Later in the session we had the US State Department saying no, the proposals were not constructive. Oil has net risen on the session a little.
The People’s Bank of China set the reference rate for USD/CNY well below the estimate again today (i.e. set the CNY stronger than estimated). China is sweating on the risk of great capital outflow from the country as they lower rates to deal with the numerous headwinds for the economy:
- rolling COVID outbreaks and associated shutdowns
- a deeply, deeply distressed property sector
- power shortages in key industrial hubs
In response China’s FX regulator the State Administration of Foreign Exchange (SAFE) issued soothing words on stable FX flows. These were accompanied by smooth-talking from the PBoC also, the usual ‘provide ample liquidity’, ‘no flood-like’ stimulus. More in the points above.
