- China's SAFE says will forcefully prevent sharp volatility in the yuan
- More from China's SAFE - expects foreign investors to keep buying yuan-denominated assets
- China's FX regulator says commercial banks bought $8.3bn of forex in June vs $3.3bn in May
- China's State Planner has released policies to boost consumption of electronics products
- Oil traders heads up: OPEC+ panel (JMMC) meeting shifted a day later (to August 3)
- November 2024 could be a big month - US and UK (?) elections
- PBOC set the reference rate 400+ lower than expect - yuan traders not fooled a second day
- ICYMI - the US Leading Economic Index data fell for its 15th consecutive month in June
- MUFG see support for the AUD ahead of an RBA August rate hike (hike is not a done deal)
- UBS targets S&P 500 to 4,400 in 12 months
- Japan June CPI, headline +3.3% y/y (expected +3.5%)
- China flagged more economic support measures on Thursday - details very light
- UK data - Gfk Consumer Confidence (July) -30 (expected -26, prior -24)
- Bank of America have a Q3 'pain trade', stronger yen & lower NASDAQ a large part
- Former Japan Yen intervention boss - BOJ won't tweak yield curve control (YCC) next week
- BoA has cut its forecast for European economc growth, citing slower China economy
- JP Morgan bullish gold and silver (cite Fed hike cycle ending), short term bull Brent oil
- Forexlive Americas FX news wrap 20 Jul: The USD rebounds after stronger claims. Yields up.
- Goldman Sachs forecasts a shallow and subdued depreciation for the US dollar into year end
- Dow industrial average up for the 9th consecutive day. That's the good news
- Trade ideas thread - Friday, 21 July 2023
Data from Japan today showed all three of the major CPI rates remained much higher than the Bank of Japan 2% target. The 15th straight month that the inflation rate is above the Bank of Japan’s 2% target. I sound like a broken record on this, but the Bank of Japan insists that current high (for Japan) CPI rates are transitory and expect them to fall from around October. What this means is that expectations for any policy move from the Bank at its meeting next week, on the 27th and 28th, are very low indeed.
USD/JPY dribbled a little lower on the CPI data initially but has since reversed to be tracking for circa 139.80 /140.30 range as I post.
There was no other data, nor news, of note during the session.
The People’s Bank of China once again set the USD/CNY reference rate much lower than was expected. Today though traders were not caught as long USD against the yuan as they were on Thursday and the range for USD/CNY and USD/CNH is a lot more subdued than Thursday’s.
Asian equity markets:
Japan’s Nikkei 225 -0.2%
China’s Shanghai Composite +0.4%
Hong Kong’s Hang Seng +1%
South Korea’s KOSPI -0.15%
Australia’s S&P/ASX 200 -0.3%
