MNI China Daily Summary: Thursday, July 25

MNI BRIEF: Japan Govt Keeps Econ View, Cuts Exports

MNI: PBOC Conducts CNY200 Bln via MLF Thurs; Rate Cut

MNI: PBOC Sets Yuan Parity Lower At 7.1321 Thurs; -1.92% Y/Y

CHINA PBOC CONDUCTS CNY235.1 BILLION VIA 7-DAY REVERSE REPOS THURS

CHINA SETS YUAN CENTRAL PARITY AT 7.1321 THURS VS 7.1358

CBI Price Expectations for Three Months Ahead Lowest Since December 2020

MNI: UK JUL CBI INDUSTRIAL TRENDS TOTAL ORDERS -32

Broad-Based IFO Weakness Reinforces Narrative of Recovery Stall

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

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$1.2169 Provides Hurdle Ahead of $1.2200

EUR
MNI (London)
  • Recovery off last Thursday's dip low of $1.2052 extended to $1.2169 into the NY open Monday only to get knocked back to $1.2135. Rate recovered through the balance of the session to $1.2162, closing the day at $1.2152.
  • Fed Clarida and Bostic both noted that US economy recovery path remains unpredictable, Clarida highlighted the recent NFP release as showing 'substantial further progress' not yet in place and thus tapering seen far off.
  • Asia continued the pressure on the USD, allowed EUR/USD to move up to retest Monday's $1.2169 high but again met decent resistance here. However, rate retains a firm tone into Europe.
  • Resistance $1.2169/73(recent high and descending resistance off 2021 high Jan06), a break to expose the May11 high/Feb26 high at $1.2182/84(see MNI Techs below) with stronger interest into $1.2200($1.2197 76.4% $1.2349-1.1704-2021 range)
  • Support $1.2150, $1.2126/24, stronger into $1.2100.
  • EZ GDP, Trade and Employment released at 0900GMT. US Housing data (starts and permits) 1230GMT. ECB Lagarde speaks at 1400GMT.
  • MNI Techs: EURUSD outlook remains bullish following the recovery last week from 1.2052, May 13 low. This level represents a key S/T support where a break is required to highlight a top and the risk of a deeper pullback. Attention is on resistance at 1.2182, May 11 high where a breach would confirm a resumption of the recovery from Mar 31 and would signal scope for gains above 1.2200. A break of 1.2052 would instead expose 1.1986, May 5 low.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
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MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange BulletsHomepage

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