MNI BRIEF: BOJ Tankan: Business Inflation Expectations Solid

MNI BRIEF: RBA Details Hypothetical Monetary Policy Paths

MNI: PBOC Net Injects CNY14.2 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Higher At 7.1876 Fri; -1.22% Y/Y

MNI BOJ DEC TANKAN LARGE MFG INDEX +14; SEPT 13; MEDIAN +12

MNI INTERVIEW2: Poland To Push For EU Defence Fund

MNI: UK DEC GFK CONSUMER CONFIDENCE INDEX -17

EZ/UK Bond Supply Calendar: Belgium ORI Facility on Friday

US EIA:NAT GAS STORAGE -190 BCF TO 3,747 BCF DEC 06 WK

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

Initial Greenback Weakness Reverses As Fed 2024 Dots Rise

FOREX
  • Price action before the FOMC rate decision saw the greenback edging lower, with the USD index declining around 0.45%, largely taking its cues from lower US yields and slightly firmer major equity benchmarks.
  • However, a hawkish hold from the FED saw US yields spike higher and the associated greenback strength prompted the USD index to trade back into positive territory. The major standout of course was the substantial rise in the 2024 year-end fed funds rate median to 5.1% which was not expected by any of the analyst previews seen by MNI.
  • Despite Chair Powell reiterating his Jackson Hole rhetoric regarding the Fed proceeding cautiously, the USD is holding near session bests as we approach the APAC crossover.
  • USDJPY has risen back above 148.00 and will focus on the overnight highs of 148.17 before 148.40, the Nov 4 2022 high. In similar vein, EURUSD maintains its bearish tone and the recent breach of 1.0686, the Sep 7 low, confirmed a resumption of the downtrend. Moving average studies are in a bear mode position, highlighting current sentiment with sights on 1.0611, a Fibonacci retracement.
  • Additionally, cable has resumed the softer price action which had categorised early Wednesday trade following the below-expectation CPI data. Some sell-side analysts have adjusted their rate calls to a hold for tomorrow’s Bank of England decision, which highlights the significance of tomorrow’s outcome. 1.2308, the May 25 low, represents the key support
  • Elsewhere, we also have central bank decisions for Sweden, Switzerland and Norway. On the data front, New Zealand GDP, US Philly Fed, Jobless Claims and Existing Home Sales highlight the docket.
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.