MNI BRIEF: Panetta Says ECB On Course For Inflation Target

MNI BRIEF: China Yuan Supported By Exports, Short Swing Sees

MNI BRIEF: RRR Trim A Better Option Than Rate Cut Now: BOC

MNI China Daily Summary: Wednesday, June 26

MNI DATA TABLE: MNI China Interbank Liquidity Index (Jun) - 1

MNI CHINA LIQUIDITY INDEX: CONDITIONS TIGHTEN IN JUNE

MNI: US MAY NEW HOME SALES -11.3% TO 0.619M SAAR

EZ/UK Bond Supply Calendar: 5/10-year BTPs / CCTeu Due Thursday​

MNI: US MBA: MARKET COMPOSITE +0.8% SA THRU JUN 21 WK

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

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

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

Greenback Extends Recovery Amid Firmer US Data

FOREX
  • Lower-than-expected US jobless claims data sparked some further relief for the greenback on Wednesday, with the USD index (+0.38%) extending the bounce from yesterday’s lows to just shy of 1%. The USD rally was strengthened by some higher revisions to both UMich sentiment data and more importantly, the inflation expectations component.
  • USDJPY continued its impressive bounce, rising 0.85% on the session and reaching a high of 149.75 from yesterday’s low of 147.15. The latest pullback works in favour of the view that recent weakness was likely part of a correction that may be over. Tuesday’s price pattern is a dragonfly doji candle, a reversal signal. If correct, it signals scope for a stronger rally that would expose key resistance at 151.95, the Oct 21 2022 high.
  • Despite a rally on the US data, USDCAD then had a continued move lower, driven by a bounce off lows for WTI (trimming losses from -4% to -2.25%) with the pair now ~40 pips below pre-Macklem levels and an earlier high of 1.3765. Macklem’s text opened with a dovish acknowledgement that rates may now be sufficiently restrictive to bring inflation to target, although yesterday’s CPI print was subsequently described as encouraging but only a single month with not yet a clear trend of renewed progress.
  • The trend outlook is bullish and short-term weakness - for now - appears to be a correction. Moving average studies highlight an uptrend and a resumption of gains would open the bull trigger at 1.3899, the Nov 1 high.
  • AUDUSD is a marginal relative outperformer on Wednesday, reflecting RBA’s Bullock noting that the final stretch of reducing inflation to target will take longer than the initial leg. AUDUSD lows of the day closely match with the previous resistance point around 0.6522, which will be monitored closely.
  • With both the US and Japan out on Thursday, focus will be on European PMIs and the Riksbank rate decision.
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.