CANADA MAY RETAILS -0.8% VS FORECAST -0.6%, PRIOR +0.6%

MNI: Canada June Retails Fall And May Biggest Drop In A Year

MNI China Daily Summary: Friday, July 19

MNI BRIEF: China To Boost Consumer Spending, New Industries

MNI BRIEF: China Enhances Fiscal Response To Boost Economy

MNI BRIEF: China To Promote Migrates' Rights, Reform Hukou System

MNI: BAKER HUGHES US RIG COUNT 586; OIL RIGS 477; GAS RIGS 103

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

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

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Broad Euro Weakness Following ECB Report, USDCNH Extends Bounce

FOREX
  • Despite EURUSD rising to within close range of trend highs above 1.0850 in early trade on Tuesday, a Bloomberg report quickly dampened sentiment for the single currency.
  • ECB policymakers are said to be starting to consider a slower pace of interest-rate hikes than President Christine Lagarde indicated in December, according to officials with knowledge of their discussions.
  • Following the piece, ECB terminal rate pricing briefly dropped as much as 17bp and the Euro traded with a negative bias for the remainder of Tuesday’s session, currently residing 0.25% lower against the greenback around 1.0795. Initial firm support lies further away at 1.0680, the 20-day EMA.
    • The relative Euro weakness was more pronounced in the crosses with the likes of EURGBP and EURNZD dropping ~1%.
  • USDJPY lacked direction are largely respected the 128-129 range ahead of the much anticipated BOJ meeting & decision due overnight. Options markets are implying moves of approx 275 pip in either direction to cover the premium paid on an ATM straddle, a sure sign that markets are anticipating acute volatility in the wake of the decision.
  • USDCNH has risen roughly half a percent, in very similar fashion to Monday’s price action, which may be a reflection of the stabilisation for the greenback but also pre-positioning ahead of lunar new year.
  • Aside from the BOJ, UK December CPI, US PPI & retail sales highlight Wednesday’s data calendar.
Energy BulletsCommodities
Energy BulletsCommodities

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.