- Japan is considering fuel price relief measures
- An oil ICYMI - US administration in talks with Venezuela about boosting supply
- Bank of Japan Governor Ueda will be speaking on Saturday, 26 August 2023 at Jackson Hole
- European Central Bank President Lagarde will be speaking at Jackson Hole on Friday
- PBOC sets USD/ CNY reference rate for today at 7.1883 (vs. estimate at 7.2923)
- ECB's Vujcic says eurozone inflation has most likely peaked
- Data from Japan showed Tokyo inflation a touch lower. USD/JPY is back above 146.
- US news - previous US President Trump has been charged in election case
- Japan data - July PPI Services (Corporate Services Price Index) +1.7% y/y (expected 1.3%)
- All Tokyo area August CPI data comes in way above the 2% BOJ target rate. Again.
- UK consumer sentiment in August rose its fastest since April
- Japan earthquake: Magnitude 5.8 off east coast of Honshu
- ECB's Nagel says policy must be more stubborn than inflation is, sees no recession coming
- China's CSRC met pension funds, big banks, major insurers to increase equity investments
- Bank of America outline potential outcomes from the Fed's Jackson Hole symposium
- Fed Jackson Hole full agenda link here - Fed, ECB, BIS speakers
- Brent oil. Citi says OPEC may need to to cut again, “fragile five" now adding to output
- Analyst says strong USD is pressuring US firms
- Forexlive Americas FX news wrap 24 Aug: USD soars as stocks tumble ahead of Powell
- Trade ideas thread - Friday, 25 August 2023
- Stock market close: Nasdaq reverses lower as the consumer crunched
Moves were not large during the session here today but were characterised by small, but mixed, gains for the USD. EUR, GBP, CHF and CAD are all down a few points while AUD and NZD are more or less unchanged.
From Japan today we had Tokyo area CPI data for August (the Tokyo inflation data is available around 3 weeks ahead of the nationwide inflation data for the same month and acts as a decent guide to the wider data). Two of the three measures dropped from the July reading while the ‘excluding food and energy’, which is the closest to the US core measure, remained unchanged at 4%. Underlying inflation pressure thus remains solid. All three remained well above the Bank of Japan 2% target. For more on this see the bullets above.
USD/JPY traded up on the session, to highs circa 146.20 but its since dropped back to around 146.00 as I post.
On the central bank news front, the People’s Bank of China once again set the USD/CNY 10+ big figures lower than the modelled estimate. The PBOC is seeking to slow the yuan decline and have done the job, so far.
News flow was light. FX dealers marked time ahead of Federal Reserve Chair Powell speaking at Jackson Hole on Friday morning. He speaks at 10.05 am US Eastern time. Note that European Central Bank President Lagarde is speaking Friday also, while Bank of Japan Governor Ueda speaks on Saturday along with Bank of England Deputy Governor Broadbent. The full agenda of speakers is linked from this post:
Asian equity markets lower ahead of Powell (and following a weak lead from Wall Street of course):
Japan’s Nikkei 225 -1.9%
China’s Shanghai Composite -0.4%
Hong Kong’s Hang Seng -0.8%
South Korea’s KOSPI -0.7%
Australia’s S&P/ASX 200 -0.9%
USD/CNH daily, showing PBOC efforts to stabilise the currency drop. Successfully this past few days: