MNI China Daily Summary: Friday, April 26

MNI BRIEF: China, US Should Strengthen Dialogue, Cooperation

MNI BRIEF: SNB Framework Reform 'Playing With Fire' - Steiner

MNI: PBOC Conducts CNY2 Bln Via OMO Fri; Liquidity Unchanged

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS FRI

MNI: PBOC Sets Yuan Parity Lower At 7.1056 Fri; -4.56% Y/Y

MNI: BAKER HUGHES US RIG COUNT 613; OIL RIGS 506; GAS RIGS 105

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL APR INDEX 77.2

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

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

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

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CHF Slides as SNB Become First G10 to Trigger Easing Cycle

FOREX
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  • The Greenback is recovering off post-Fed lows, putting the USD Index comfortably above the overnight and Wednesday worst levels. This keeps the USD Index inline with longer-running trends, as the 200-dma holds just above at 103.700. The European session so far has been active, with several rate decisions and key flash PMI releases to digest.
  • The Swiss National Bank took markets by surprise in cutting rates by 25bps, putting the headline deposit rate at 1.50% to become the first G10 central bank globally to ease policy in this cycle. With only 7bps of easing priced via OIS markets ahead of the release, CHF corrected lower, tipping EUR/CHF to new cycle highs and narrow the gap with the 0.9800 handle. Resultingly, the CHF is comfortably the poorest performer in DM FX.
  • The Norges Bank rate decision saw rates unchanged, but the policy path projections erred hawkishly, with markets expecting a larger downward revision due to recent developments in inflation and the NOK. As a result, NOK trades firmer tipping EUR/NOK to pullback lows of 11.4846.
  • PMI data has generally fared lower-than-expected, with French and German flash PMI numbers weaker than market forecast. This took some wind out of the sails of the single currency, tipping EUR/USD lower by ~20 pips headed into the NY crossover.
  • The Bank of England rate decision ahead takes focus - with the Bank seen keeping rates unchanged. The MPC vote split will be of particular focus, given the risks of a three-way split among the council. Weekly US jobless claims are also due, as well as the existing home sales release for February. Fed's Barr will be the first speaker following yesterday's FOMC
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  • The Greenback is recovering off post-Fed lows, putting the USD Index comfortably above the overnight and Wednesday worst levels. This keeps the USD Index inline with longer-running trends, as the 200-dma holds just above at 103.700. The European session so far has been active, with several rate decisions and key flash PMI releases to digest.
  • The Swiss National Bank took markets by surprise in cutting rates by 25bps, putting the headline deposit rate at 1.50% to become the first G10 central bank globally to ease policy in this cycle. With only 7bps of easing priced via OIS markets ahead of the release, CHF corrected lower, tipping EUR/CHF to new cycle highs and narrow the gap with the 0.9800 handle. Resultingly, the CHF is comfortably the poorest performer in DM FX.
  • The Norges Bank rate decision saw rates unchanged, but the policy path projections erred hawkishly, with markets expecting a larger downward revision due to recent developments in inflation and the NOK. As a result, NOK trades firmer tipping EUR/NOK to pullback lows of 11.4846.
  • PMI data has generally fared lower-than-expected, with French and German flash PMI numbers weaker than market forecast. This took some wind out of the sails of the single currency, tipping EUR/USD lower by ~20 pips headed into the NY crossover.
  • The Bank of England rate decision ahead takes focus - with the Bank seen keeping rates unchanged. The MPC vote split will be of particular focus, given the risks of a three-way split among the council. Weekly US jobless claims are also due, as well as the existing home sales release for February. Fed's Barr will be the first speaker following yesterday's FOMC