MNI China Daily Summary: Thursday, March 13

MNI BRIEF: China Has Been In Communication With U.S. On Trade

MNI BRIEF: China To Enhance Customs Clearance

MNI BRIEF: China Consumer Satisfaction Up

MNI: PBOC Net Drains CNY68.6 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Higher At 7.1728 Thurs; -0.64% Y/Y

MNI: US FEB FINAL DEMAND PPI +0.0%, EX FOOD, ENERGY -0.1%

MNI: US JOBLESS CLAIMS -2K TO 220K IN MAR 08 WK

MNI: CANADIAN JAN BUILDING PERMITS -3.2% MOM

GERMANY: Union/SPD Migration Alignment After Turmoil Threatened Debt Deal (BILD)

GERMANY: Official Interim Election Results Tilt Towards Missing BSW & FDP

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EM FX: MXNJPY Extends Declines to 3.15%

EM FX
BulletEM BulletEmerging Market News
  • With intra-day weakness for the Mexican peso extending in recent trade, and the notable appreciation for the Japanese Yen on Monday, MXNJPY is now seen 3.15% in the red, pressing session lows at typing.
  • The notable moves for this cross are reminiscent of sessions seen in 2024, fuelled by the aftermath of the Mexico presidential election in June and the BOJ interventions/global carry unwind episode in late July/August 2024.
  • Last week, the cross made a brief test of the support trendline drawn from the September lows, however, today’s price action looks like a more meaningful test of this technical point. Further weakness might signal scope for a move back to the December lows around 7.29, and from a medium-term perspective, bring the 2024 lows back into focus at 7.00.
  • Accompanying today’s risk off sentiment, analysts have noted the BoJ delivered a more hawkish message than expected last Friday, upgrading its inflation forecasts for FY2025 and emphasising confidence in the outlook that should allow for additional rate hikes, which may be bolstering the downside momentum for MXNJPY at this juncture.
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  • With intra-day weakness for the Mexican peso extending in recent trade, and the notable appreciation for the Japanese Yen on Monday, MXNJPY is now seen 3.15% in the red, pressing session lows at typing.
  • The notable moves for this cross are reminiscent of sessions seen in 2024, fuelled by the aftermath of the Mexico presidential election in June and the BOJ interventions/global carry unwind episode in late July/August 2024.
  • Last week, the cross made a brief test of the support trendline drawn from the September lows, however, today’s price action looks like a more meaningful test of this technical point. Further weakness might signal scope for a move back to the December lows around 7.29, and from a medium-term perspective, bring the 2024 lows back into focus at 7.00.
  • Accompanying today’s risk off sentiment, analysts have noted the BoJ delivered a more hawkish message than expected last Friday, upgrading its inflation forecasts for FY2025 and emphasising confidence in the outlook that should allow for additional rate hikes, which may be bolstering the downside momentum for MXNJPY at this juncture.
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