MNI China Daily Summary: Thursday, April 22

MNI BRIEF: China To Quicken Resolving Local Debt Risks

RPT-MNI INTERVIEW: ECB's Wunsch Sees At Least Two Cuts By Dec

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

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

MNI: PBOC Sets Yuan Parity Lower At 7.1043 Mon; -4.74% Y/Y

MNI: CANADA MAR INDUSTRIAL PRICES +0.8% MOM; EX-ENERGY +0.8%

NBH Data Watch

INDON Sov Curve Flatter, Trade Surplus Soars, BI Decision Wednesday

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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EUR/USD Plummets to New Multi-Decade Low

FOREX
  • The EUR/USD primary downtrend resumes Tuesday, with the pair taking out the earlier YTD lows at 1.0350 to put prices at levels not seen since 2002. The acceleration lower in the pair coincides with the return of US markets after the July 4th holidays, with lower-than-expected French services and composite PMI data adding extra weight.
  • This underpins a broader risk-off theme, evident in lower equity markets and lower Treasury yields headed into the NY crossover. The US 10y yield has reversed early upside to sit within range of the July lows printed on Friday at 2.7873%. A break below that level would mark the lowest 10y yield since late May and a ~75bps turnaround off the mid-June highs.
  • The Reserve Bank of Australia raised rates by 50bps overnight to 1.35% - alongside expectations. The decision prompted little immediate market response, with the RBA signaling further tightening steps to come. Through the European open, however, broad greenback strength has worked against AUD/USD, putting the pair briefly below 0.68 and within view of the 2022 lows at 0.6764.
  • Focus going forward turns to factory orders and the final durable goods data for May, while BoE's Tenreyro is also due to speak following the publication of the BoE's Financial Stability Report.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
Energy BulletsCommodities
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
Energy BulletsCommodities

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