- China Evergrande (property group) - bond holders have rejected payment delay proposal
- Deep Saudi oil insider, the "oil whisperer" says raising production is easy, "Don't worry"
- USD/JPY blast off through 137.00, rises to its highest since ... 1998
- China bank run - Chinese security arrest those who lost their deposits
- USD/JPY (up) and EUR/USD (down) have been Asia Monday morning movers
- PBOC sets USD/ CNY reference rate for today at 6.6960 (vs. estimate at 6.7002)
- MUFG adds a short EUR/USD as its Trade of the Week
- BOJ Gov Kuroda says BOJ will maintain ultra-loose monetary policy
- Weekend - Fire at Medford (Oklahoma) natural gas plant after an (unconfirmed) explosion
- Chinese State (financial) media says June CPI won't stand in the way of more stimulus
- Japan data - May Core Machinery Orders -5.6% m/m (expected -5.5%)
- 47 top companies at risk of having Russia seize key assets
- New Zealand data - retail sales data indicator misses
- "Preview": Reserve Bank of New Zealand expected to raise its official cash rate 50bps
- US' Raimondo: "I don't see any reason to think that we will have a serious recession,"
- China COVID update - Macau shut almost all businesses, including its casinos, for the week
- ICYMI: France's Le Maire says a strong chance Moscow will totally halt gas suppy to Europe
- ICYMI - Chinese June inflation (CPI and PPI) data was released over the weekend
- Trade ideas thread - Monday, 11 July 2022
- Monday morning open levels - indicative forex prices - 11 July 2022
- Have bond yields peaked? And why the answer to that question is so important
- Bitcoin Trade Idea and Funny Mood
- Sri Lanka descends into chaos. Where might the commodity crisis hit next?
- China June CPI 0.0% m/m vs -0.1% expected
It was an active weekend for developing news.
On COVID in China:
.... Macau shuttered businesses (excluding essentials like supermarkets and pharmacies) for a week
.... The new BA5 variant was found in Shanghai, triggering renewed lock down fear
China’s bank liquidity problems intensified; depositors who lost their money staged protests and were carried off by Chinese security forces
Japan’s weekend election resulted in an increase in upper house seats (as polling had suggested) for the governing LDP, which will make passage of legislation even easier for the incumbents. Some judged the result also as a sort of referendum on the BOJ's easy monetary policy regime
A fire at a US natural gas plant following similar damage last month at another
China inflation figures released on Saturday will not restrict further monetary stimulus
China Evergrande (the deeply distressed property group) says its proposal to postpone debt payments to bond holders was rejected by thee bond holders
French Economy and Finance Minister Bruno Le Maire said a total cut-off of gas from Russia is most likely
On the central bank new wires was a speech from Bank of Japan Governor Kuroda. Kuroda did not add anything new, but once again said the Bank is committed to very loose monetary policy. There is plenty of speculation about the BOJ will abandon its Yield Curve Control Policy. Kuroda’s consistent “No Way!” message seems to remind us that this is still a long way off.
USD/JPY had been steadily gaining ahead of Kuroda and after his comments it continued to stack on the gains, in a more rapid fashion. Its surged above 137.00 to its highest since 1998. As I post we have not heard the usual bleatings from the Ministry of Finance about “too rapid yen falls” and such. They’ll be along, for sure, just haven’t heard them yet today.
EUR/USD gave back some of its Friday gains, dropping from early levels as high as circa 1.0180 to (briefly) under 1.0140. GBP, AUD, NZD, CAD all dropped against the flexing US dollar.
Bitcoin spent much of the weekend losing ground although it remains above US$20K.
Oil lost ground on the session, as did S&P500 and NASDAQ equity index futures.
