MNI China Daily Summary: Friday, September 6

MNI BRIEF: China To Address Consumption In Next Five-year Plan

MNI: PBOC Net Injects CNY111.4 Bln via OMO Friday

CHINA PBOC CONDUCTS CNY141.5 BLN VIA 7-DAY REVERSE REPOS FRI

MNI: PBOC Sets Yuan Parity Lower At 7.0925 Fri; +2.94% Y/Y

CHINA SETS YUAN CENTRAL PARITY AT 7.0925 FRI VS 7.0989

MNI: EUROZONE Q2 GDP +0.2% Q/Q, +0.6% Y/Y

MNI: FRANCE JUL INDUSTRIAL PRODUCTION -0.5% M/M, -2.2% Y/Y

MNI: GERMANY JUL EXPORTS +1.7% M/M; IMPORTS +5.4% M/M

AUSTRALIA: Albanese Lines Up Budget for May Election

AUSTRALIA: Albanese Lines Up Budget for May Election

UK: Week Ahead

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

FOREX: USD/JPY Eyes Bear Trigger and Pullback Low Pre-NFP

FOREX
BulletMarketsFixed Income BulletsForeign Exchange Bullets
  • Ahead of the NFP report for August, JPY has rallied further, extending strength on the week and keeping USD/JPY pinned toward the pullback lows posted in early August at 141.70.
  • The August jobs report should prove key Friday and could set the tone for the Fed rate decision on September 18th. Consensus looks for +165k today and a lower U/E rate of 4.2%, but the whisper number looks lower at 152k and the broad USD weakness posted since the beginning of this week makes it clear markets are gearing for a soft number.
  • With September pricing pinned between a 25 and a 50bps rate cut from the Fed, conviction in either direction should prove market-moving today, with the USD Index just 0.4% off the bear trigger and key support at 100.514.
  • Overnight USD vols were well bid into the Thursday close, suggesting markets ascribe a high likelihood of a sharp market move upon release today. EUR/USD overnight vols topped 14 points yesterday, the highest level since mid-December's central bank deluge, meaning markets price a ~75 pip swing in the pair.
  • Outside of the jobs report, the CAD equivalent is also due, and follows a third consecutive BoC rate cut this week. A soft U/E rate (exp. at 6.5% from 6.4% prior) could trigger pricing for further cuts ahead.
216 words

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.
  • Ahead of the NFP report for August, JPY has rallied further, extending strength on the week and keeping USD/JPY pinned toward the pullback lows posted in early August at 141.70.
  • The August jobs report should prove key Friday and could set the tone for the Fed rate decision on September 18th. Consensus looks for +165k today and a lower U/E rate of 4.2%, but the whisper number looks lower at 152k and the broad USD weakness posted since the beginning of this week makes it clear markets are gearing for a soft number.
  • With September pricing pinned between a 25 and a 50bps rate cut from the Fed, conviction in either direction should prove market-moving today, with the USD Index just 0.4% off the bear trigger and key support at 100.514.
  • Overnight USD vols were well bid into the Thursday close, suggesting markets ascribe a high likelihood of a sharp market move upon release today. EUR/USD overnight vols topped 14 points yesterday, the highest level since mid-December's central bank deluge, meaning markets price a ~75 pip swing in the pair.
  • Outside of the jobs report, the CAD equivalent is also due, and follows a third consecutive BoC rate cut this week. A soft U/E rate (exp. at 6.5% from 6.4% prior) could trigger pricing for further cuts ahead.