Free Trial

Participants were on the lookout for..........>

FOREX
FOREX: Participants were on the lookout for today's PBoC fix, which ultimately
revived their appetite for risk assets. USD/CNH spiked higher as the USD/CNY
mid-point was set above CNY7.0, but a quick comparison with the RTRS estimate
revealed that expectations were for an even higher fix, which promptly negated
the initial reaction, easing concerns of further yuan depreciation.
- High-beta G10 FX recovered post-yuan fix at the cost of safe haven currencies.
- There were a few rounds of comments from RBNZ off'ls, namely Gov Orr & Asst
Gov Hawkesby. NZD knee-jerked higher as Hawkesby expressed confidence of pushing
inflation higher in the wake of a 50bps reduction of the OCR. All in all, Orr's
& Hawkesby's rhetoric largely echoed yesterday's communique.
- The combination of a stronger than exp. PBoC fix & Japan's thumbs up for a
round of high-tech exports to South Korea provided support to KRW.
- China's trade surplus was wider than exp., with beats noted in both exports
and imports, even as the latter shrunk. Reaction in G10 FX was very limited.
- U.S. wholesale trade sales/inventories, Norwegian industrial output & the
ECB's Economic Bulletin are on the docket today.

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.