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

MNI China Daily Summary: Wednesday, July 24

MNI: PBOC Net Drains CNY203.9 Bln Via OMO Wednesday

MNI: JAPAN JUNE SERVICES PPI +3.0% Y/Y; MAY REV +2.7%

MNI BRIEF: Japan June Services PPI Rises 3.0% Vs. May's 2.7%

US Treasury Auction Calendar

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

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

EUR/USD Recovery Efforts Continue to Meet Headwinds

EUR
MNI (London)
  • EUR/USD was shoved through $1.2130 support in early NY Thursday, touched a low of $1.2111 before it picked up fresh demand into the 1600GMT.
  • Rate recovered to post a fresh intraday high of $1.2178 as market reacted to Fed Powell's dovish comments, emphasizing a need for a sustained inflation rate above 2.0% before the Fed considers tightening action.
  • Market then moved to adjust positions ahead of President elect Biden comments, coming after the NY market. Rate eased to $1.2147 as UST yields pushed higher, before it settled around $1.2154 into the close.
  • Rate eased to $1.2150 in early Asia, bounced to $1.2163 as Biden began to speak. However, contents of the speech provided no major surprises, the $1.9tln of COVID aid reported ahead of announcement. Market will watch what hurdles this package will run into before it passes.
  • No major reaction seen and EUR/USD drifted off through the balance of the Asian session to $1.2135, some suggesting support back in place at $1.2130, stronger between $1.2110/00, a break to expose the Dec09 low of $1.2059.
  • Resistance now seen between $1.2170/80, a break to open a move back toward $1.2200.
  • Inflation from France and Spain then EZ Trade provide domestic data interest this morning. ECB Visco speaks at 0800GMT.
  • US Retail Sales, Empire Mfg, PPI, IP, Capital Utilisation and UofM the data focus into the afternoon. Fed Kashkari(non-voter, dove) speaks at 1630GMT.
  • MNI Techs: EURUSD is trading closer to recent lows. The move lower since Jan 6 signals the start of a correction that is allowing a recent overbought condition to unwind. Price action this week traded through the 20-day EMA and support at 1.2130, the Dec 21 low. The break exposes the 50-day EMA at 1.2095. Note too that the most recent consolidation appears to be a bear flag, reinforcing bearish conditions. 1.2230 marks initial resistance.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

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.