MNI BRIEF: Fed’s Collins Sees Rate Cuts Later Than Had Thought

MNI BRIEF: China March M2 Slows More Than Expected

MNI China Daily Summary: Friday, April 12

MNI BRIEF: China Tightens Stock Market Supervision

MNI BRIEF: China Mar Exports Jump On Demand; Imports Improve

MNI: PBOC Sets Yuan Parity Lower At 7.0967 Fri; -4.87% Y/Y

March Home Sales Jumped At End Of Month

MNI: US MAR IMPORT PRICES +0.4%

EZ/UK Bond Supply Calendar: Slovakia Auction, BoE APF on Monday

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

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

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

EURJPY Dives 1.6% On Weak PMIs/Global Growth Concerns

FOREX
  • The Euro sustained early pressure on Thursday following a very disappointing set of Eurozone preliminary PMI data. With German and French services and manufacturing sectors growing far slower than forecast, EURUSD feel just shy of 100 pip to print a low of 1.0483 ahead of NY trade.
  • Amid growing US recession fears USDJPY had also underperformed throughout early trade on Wednesday, but the weakness extended in the lead up to a dismal set of US PMI numbers that included a 23-month low for Manufacturing and 5-month low for Services.
  • While the data had no lasting impact on the greenback, the underlying risk-off tone continued to dampen the EURJPY exchange rate, down 1.6% for the session.
  • The pair has been maintaining a bullish technical outlook of late, however, the sharp pullback during today’s session indicates the pair’s ongoing short-term sensitivity to bouts of poorer global sentiment. The move down has narrowed the gap with initial firm support residing at 140.62, the 20-day EMA. In similar vein, AUDJPY has maintained a downward trajectory and has had an even larger adjustment of -1.70%
  • Elsewhere, the Norwegian central bank rate decision delivered mixed messages: the bank raised rates by 50bps - a larger hike than forecast - but indicated this more sizeable pace of tightening would not be maintained further out the curve, with just 25bps likely to follow in August. As a result, the NOK trades close to unchanged against the Euro, despite initial supportive price action.
  • Looking ahead to tomorrow, markets will get Japanese core CPI data and it is worth noting New Zealand are out for a local holiday. In Europe, UK retail sales for May will be published shortly before German IFO data. University of Michigan sentiment data headlines the US docket.
  • RBA Governor Lowe is due to participate in a panel discussion at an online event hosted by the Union Bank of Switzerland as well as potential comments from Fed’s Bullard and BOE’s Pill and Haskel.
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.