- Bank of Canada Deputy Governor Kozicki speaking Tuesday on inflation
- Morgan Stanley on US stocks - "risks for a major correction have rarely been higher"
- USD/JPY around 145 could be the trigger for Bank of Japan policy change
- PBOC set the onshore yuan stronger than expected, USD/CNH tumbling
- PBOC sets USD/ CNY central rate at 7.2098 (vs. estimate at 7.2194)
- PBOC 1 of only 2 G10 central banks in easing mode. Weak yuan. Not currency rocket science.
- Poll: Bank of England expected to raise rates 25bp at both the August & September meetings
- Australian weekly consumer confidence survey 74.9 (prior 72.4)
- Uk data - BRC Shop Price Index +8.4% y/y (prior +9%)
- Saudi Aramco believes oil market fundamentals remain solid for H2 2023
- Canada May inflation data due on Tuesday 27 June 2023 - preview - "look for CPI to fall"
- UBS on the Russian coup and crude - "supportive of oil prices in the near term"
- HSBC are looking for a higher EUR on the back of more ECB rate hikes still to come
- Goldman Sachs on the weekend's coup attempt in Russia, impact on oil pricing
- Forexlive Americas FX news wrap 26 Jun: Sluggish day to start the new trading week.
- The huge ECB conference kicks off (for real) today - Tuesday's speakers include Lagarde
- US Yellen is planning a July trip to China. Meanwhile US admin preparing investment curbs.
- Trade ideas thread - Tuesday, 27 June 2023
The People’s Bank of China fixed the onshore yuan stronger than expected at the reference rate setting today. The expected rate was just shy of 7.22 but the Bank set USD/CNY under 7.21. This was the second day in a row the PBOC had set the CNY stronger than expected. The yuan has been losing value rapidly and while the Bank is not unhappy with the decline it is not comfortable with too rapid a pace.
With a stronger than expected CNY the offshore yuan jumped higher. Other major FX also gained. EUR, CAD, GBP, AUD, CHF, NZD all higher. AUD/USD has been a particular beneficiary, its over 0.6700 as I update.
USD/JPY, of course, is in its own world, its not a lot change on the session circa 143.40.
Chinese Premier Li Qiang gave a speech, he said nothing on economic stimulus. He said China is on course to achieve its around 5% economic growth target in 2023.
Asian equity markets:
Japan’s Nikkei 225 -0.8%
China’s Shanghai Composite +0.6%
Hong Kong’s Hang Seng +1.2%
South Korea’s KOSPI -0.3%
Australia’s S&P/ASX 200 +0.6%
Offshore yuan strength.