- ICYMI - Top Chinese ship finance leader detained for investigation - COSCO chairman
- RBA Governor Bullock to speak on "Inflation, Financial Stability and Employment" Tuesday
- Surge in Japan wholesale services inflation driven by a tight job market, inbound tourism
- Bank of England's Andrew Hauser appointed as Deputy Governor of Reserve Bank of Australia
- China's Health Ministry says the surge in respiratory illnesses not a novel virus
- Boosting financial support for private firms: the People's Bank of China takes action
- China Industrial profits for October YTD -7.8% (prior -9.0%)
- PBOC sets USD/ CNY reference rate for today at 7.1159 (vs. estimate at 7.1461)
- Bank of England faces urgent overhaul over laggardly inflation response - "inadaquate"
- Japan data: PPI Services for October +2.3% y/y (expected +2.1%)
- US Navy ship frees hijacked tanker in Middle East waters
- Bank of America warns that signs of caution have emerged for S&P 500
- ECB's Nagel says inflation is slowing, but its not yet at level desired by the Bank
- Reserve Bank of New Zealand (RBNZ) preview: No change expected in the Official Cash Rate
- Trade ideas thread - Monday, 27 November, insightful charts, technical analysis, ideas
- Monday morning open. Start your week with a look at indicative forex prices: 27 November
- Weekly Market Outlook (27-01 December)
- Newsquawk Week Ahead: highlights include US PCE, ISM; OPEC; EZ inflation
- Strong auto sales hide slowing Canadian disretionary spending
- Forexlive Americas FX news wrap 24 Nov: Canada retail sales send CAD higher. USD lower.
There were small-scale swings across much of major FX during the session but the notable move was a lower USD/JPY.
Data from Japan was for the October Corporate Services Price Index (i.e. Services PPI), which rose 2.3% y/y vs. the +2.1% that was expected. This data point is not normally too much of a yen mover but it had an outsized impact today. The details revealed a lift in labour costs. You’ll recall that the Bank of Japan is eyeing Spring wage negotiations for signs of inflation pressure being sustained by demand-pull factors such as rising pay. If the Bank is convinced rising wages will support stable and sustainable inflation at or above its 2% target then the Bank can pivot away from negative rates. I think it’s a stretch to say that's what today’s data is showing, but I concede it does go part of the way. Regardless of what I think or concede though, the move into yen today is suggestive of the market now paying heightened attention to any signs of wage growth.
In other news:
- Profits at China’s industrial companies rose at a much slower pace in October than in September (YTD is still negative). The rise is welcome but the pace indicates that China’s economic recovery remains fragile.
- China noted multiple central government departments pledge to support private enterprises' growth, including the People’s Bank of China.
- China’s health authorities said the surge in mycoplasma-caused pneumonia in children shows signs of ebbing, warned that other respiratory illnesses are likely to hit during winter, and that the current outbreak is not caused by a novel virus
- Joe Biden will not attend the Cop28 climate meeting in Dubai
- A US Navy intervened in a pirate attack on a tanker in Middle East waters, arresting the hijackers. The US ship came under missile attack after its action but shot down the inbound projectiles before damage was done.
- There was an exchange of Hamas-held hostages for prisoners over the weekend.
