- Federal Reserve Bank of Philadelphia President Patrick Harker speaks on Friday
- Bank of England Governor Andrew Bailey is speaking on Friday
- China September USD dollar denominated Exports -6.2% y/y, Imports -6.2%
- US bonds - "We are not done testing a 5% yield on the 10-year note or 30-year bond"
- Bank of Canada Governor Tiff Macklem is speaking Friday
- Australian financial media says One in five borrowers is ‘screwed’
- Federal Reserve Chair Powell and PBOC governor Pan Gongsheng met on October 12
- China January - September yuan denominated exports +0.6% y/y, imports -1.2% y/y
- New Zealand election on Saturday - change of government expected - NZD impact low
- China September CPI +0.2% m/m (vs. expected +0.3%)
- US to close 'loophole' that gives Chinese companies back door access to US AI chips
- PBOC sets USD/ CNY reference rate for today at 7.1775 (vs. estimate at 7.3179)
- China’s US$1.35 trillion sovereign fund boosts stake in Big Four banks (CNY intervention?)
- Monetary Authority of Singapore maintains prevailing rate of appreciation of policy band
- US politics - Scalise withdrawing from the Speaker race. Failed to get enough support
- USD/JPY back nudging towards 150 - Japanese (verbal) intervention has started already
- JP Morgan analyst shrugs off the US CPI data: really not much going on
- TD on "worries about a lack of demand for Treasuries", could see a run to 5%
- New Zealand data - September Card retail sales -0.8% m/m (prior +0.7%)
- New Zealand September Manufacturing PMI 45.3 vs. prior 46.1
- Will a 25bp interest rate increase be the Christmas gift from the FOMC?
- Iran's Foreign Minister publicly states his regime's support for brutal terrorist attacks
- Forexlive Americas FX news wrap: Yields and dollar spike after terrible bond auction
- More from Fed's Collins: Resilient economy means higher rates for longer
- Brent crude oil - the demand worries vs. supply worries continue to play out
- US indices snap 4-day win streak as concerns about CPI and US debt increase fear
- Trade ideas thread - Friday, 13 October 2023
There was a minor retracement loss for the US dollar after its sharp gains in post-US CPI trade Thursday. EUR, GBP, AUD all showed small positives. USD/JPY, on the other hand, traded fairly steadily around 149.80, once again threatening 150. As I post we have not had ‘intervention’ remarks from Japanese officials, although we did hear from one Ministry of Finance official speaking from the G7 in Morocco on Thursday.
In China today, the People’s Bank of China once again set USD/CNY on the 7.17 big figure despite the market trading it more than 10 big figures higher. China’s inflation data shows the country is on the edge of deflation again. The trade data improved marginally m/m but is still down on last year.
Asian equity markets fell following the poor lead from Wall Street.
Asian equity markets:
Japan’s Nikkei 225 -0.4%
China’s Shanghai Composite -0.6%
Hong Kong’s Hang Seng -2%
South Korea’s KOSPI -0.8%
Australia’s S&P/ASX 200 -0.3%
Oil update:
