Free Trial
EUROZONE ISSUANCE

EGB Supply For W/C Aug 8, 2022

EQUITY TECHS

E-MINI S&P (U2): Trading Closer To Its Recent Highs

EGBS

GS recommends selling 10y BTPs vs Bonos

EURJPY TECHS

Approaching The 20-and 50-Day EMAs

EUROZONE T-BILL ISSUANCE

W/C August 8, 2022

EUROSTOXX50 TECHS

(U2) Trend Needle Still Points North

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

China's Off'l PMIs Support Risk, Kiwi Takes Hit From Weak NZ Biz. Conditions

FOREX

Demand for safe haven currencies fizzled away even as U.S. e-mini futures were heavy. Sentiment improved after the release of China's official PMI figures. The data revealed a considerably faster than expected recovery in the non-manufacturing sector coupled with a marginal miss in the manufacturing gauge.

  • Some of the details of the Chinese survey were concerning, as steel PMI plunged to a record low, while accompanying commentary warned that "attention still needs to be paid to imbalances between the recoveries in supply and demand."
  • Offshore yuan caught a bid upon the release of PMI data, but spot USD/CNH failed to sink through yesterday's lows. The yuan fixing offered no real impetus, with the mid-point of permitted USD/CNY trading band set just 10 pips above sell-side estimate.
  • Both yen and greenback underperformed on the back of reduced demand for safe haven assets. Spot USD/JPY operated within close proximity to the Y137.00 mark, which capped gains on Wednesday. The pair's 1-month risk reversal is poised to extend its advance to three consecutive days.
  • The Aussie outperformed in G10 FX space but the kiwi lagged behind owing to a dismal ANZ Business Confidence reading released out of New Zealand. Activity indicators were weak across the board, with the drop in expected profitability particularly pronounced.
  • AUD/NZD climbed to its best levels in two weeks as Australia/New Zealand 2-Year swap spread tightened. Today's data showed that relative momentum in business conditions continues to support the Antipodean cross.
  • On the data front, final UK GDP, German unemployment & flash French CPI take focus from here. Elsewhere, Sweden's Riksbank will announce its monetary policy decision. An overwhelming majority of analysts expect the bank to lift its policy rate by 50bp.
282 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Demand for safe haven currencies fizzled away even as U.S. e-mini futures were heavy. Sentiment improved after the release of China's official PMI figures. The data revealed a considerably faster than expected recovery in the non-manufacturing sector coupled with a marginal miss in the manufacturing gauge.

  • Some of the details of the Chinese survey were concerning, as steel PMI plunged to a record low, while accompanying commentary warned that "attention still needs to be paid to imbalances between the recoveries in supply and demand."
  • Offshore yuan caught a bid upon the release of PMI data, but spot USD/CNH failed to sink through yesterday's lows. The yuan fixing offered no real impetus, with the mid-point of permitted USD/CNY trading band set just 10 pips above sell-side estimate.
  • Both yen and greenback underperformed on the back of reduced demand for safe haven assets. Spot USD/JPY operated within close proximity to the Y137.00 mark, which capped gains on Wednesday. The pair's 1-month risk reversal is poised to extend its advance to three consecutive days.
  • The Aussie outperformed in G10 FX space but the kiwi lagged behind owing to a dismal ANZ Business Confidence reading released out of New Zealand. Activity indicators were weak across the board, with the drop in expected profitability particularly pronounced.
  • AUD/NZD climbed to its best levels in two weeks as Australia/New Zealand 2-Year swap spread tightened. Today's data showed that relative momentum in business conditions continues to support the Antipodean cross.
  • On the data front, final UK GDP, German unemployment & flash French CPI take focus from here. Elsewhere, Sweden's Riksbank will announce its monetary policy decision. An overwhelming majority of analysts expect the bank to lift its policy rate by 50bp.