- Semiconductor supply chain issues - U.S.-led "Fab 4" alliance meeting
- European Central Bank speakers due Monday, 27 February 2023 - Lane, de Cos
- Goldman Sachs on US bond market pressure weighing on the yen
- Societe Generale expect more hikes ahead from the ECB vs. Fed. Bunds to underperform USTs
- China new coal-fired power plant construction approval soared in 2022 - energy security
- ICYMI - Sunak And von der Leyen will speak on a Brexit Northern Ireland deal on Monday
- Bank of England Deputy Governor Broadbent speaks on Monday (non monetary policy related)
- PBOC sets USD/ CNY reference rate for today at 6.9572 (vs. estimate at 6.9586)
- Australian CPI data due on Wednesday - the RBA is nervously eyeing surging inflation
- PBOC is expected to set the USD/CNY reference rate at 6.9586 – Reuters estimate
- Australian data: Q4 Business Inventories -0.2% q/q (vs. Expected -0.2%)
- Weekend report that Russia halts pipeline oil to Poland
- Australia maintains key macroprudential policy settings - warns of possible deterioration
- EU/UK Brexit deal (Northern Ireland Protocol) appears close, here are the problems though
- UK - EU Northern Ireland protocol. Sunak, Von Der Leyen press conference coming Monday
- Missing China Renaissance head "currently cooperating in an investigation"
- Trade ideas thread - Monday, 27 February 2023
- UK's Raab says "on the cusp" of a deal with the EU over Northern Ireland
- New Zealand data - Q4 Retail Sales -0.6% q/q (prior +0.4%)
- European Central Bank Pres. Lagarde "another 50 basis points in March" the data dependent
- ECB's Visco says "can't say" high rates need to go, could be 3.75% but its data dependent
- Monday morning open levels - indicative forex prices - 27 February 2023
- Technical analysis for META stock: How to catch the dip and strengthen your long position
- Week Ahead: ISM, BoJ Governor, China PMI, EZ flash inflation, ECB minutes
- What's next for the Israeli shekel in light of the protests?
- Forexlive Americas FX news wrap: Highs of the year for USD as PCE inflation runs hot
There was a brief bout of buying for non-USD majors in the early hours but this quickly faded as Friday’s USD surge resurfaced. USD/JPY was in its own world of course, it swung in a range for the session and as I post is only a little net changed.
On data. New Zealand retail sales data came in weaker than expected for Q4 2022 as the impact of rising rates was felt in the New Zealand economy. NZD/USD did little in response to the old data.
News flow was light. We did get Brexit (remember that?) related info. It appears that the UK and EU are very close to an agreement on the Northern Ireland Protocol. More news as this as it developed in the points above.
On central banks. The People’s Bank of China slashed the onshore yuan at today’s reference rate setting, by more than 600 points from Friday’s mid-rate. It was the biggest weakening of the onshore yuan at the setting since July last year and it took the reference rate to its weakest (for the CNY) since December 30 last year. This pops up questions about whether Chinese authorities are using a weaker yuan to prop up imploding real estate-related domestic economic weakness and to hold on to export gains. These have diminished as the pandemic-induced boom in goods has faded towards services. A weaker yuan would serve somewhat as an offset for China’s goods exporters.
Asian equity markets:
Japan’s Nikkei 225 -0.15%
China’s Shanghai Composite -0.1%
Hong Kong’s Hang Seng -0.45%
South Korea’s KOSPI -1%
Australia’s S&P/ASX 200 -1.3%
Offshore yuan: