MNI: PBOC Sets Yuan Parity Lower At 7.1228 Thurs; +2.24% Y/Y

MNI: PBOC Net Drains CNY218.4 Bln via OMO Thursday

CHINA PBOC CONDUCTS CNY359.3 BILLION VIA 7-DAY REVERSE REPOS THURS

CHINA SETS YUAN CENTRAL PARITY AT 7.1228 THURS VS 7.1307

MNI BRIEF: BOK Holds Rate, Downgrades GDP, CPI View

MNI: PBOC Net Drains CNY111.2 Bln via OMO Wednesday

Preliminary August PMIs Improve, But Manufacturing Still Sub 50.0

Local Investors Purchases Of Offshore Bonds Surge In Recent Weeks

EZ/UK Bond Supply Calendar: EFSF RfP Sent, EU-Bonds Due Monday

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

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

Prices Settle, But Underlying Sentiment Still Fragile

FOREX
  • Following the dollar's fierce Monday rally, the USD Index is fading slightly ahead of Tuesday's NY crossover, allowing EUR/USD, GBP/USD and others to recover off the lows. This puts EUR/USD closer to 1.05 headed into US hours, after trading as low as 1.0397 overnight.
  • A stabilisation of sentiment is also evident in equity markets, with futures uniformly higher, albeit still well short of the week's best levels - solidifying the scale of the risk sell-off on Monday. Despite the more stable outlook for spot prices today, markets remain fragile, with implied volatility across G10 FX still well elevated. Today, 1m USD/JPY implied vols cleared 14 points, the highest since the depths of the COVID-19 crisis.
  • CAD is the sole currency underperforming the greenback at this stage, putting USD/CAD north of 1.29 for the first time since mid-May, cementing the recent short-term reversal. The extension higher has resulted in a test of resistance at 1.2896, the May 19 high. Sights are on a Fibonacci retracement at 1.2945, where a break would open key resistance at 1.3077.
  • US PPI takes focus going forward, with markets continuing to look for any further clues on burgeoning inflationary pressure in the US. PPI is seen decelerating slightly on a Y/Y basis across both the core and non-core readings. ECB's Schnabel is also slated to speak, although a policy focus is unlikely today.
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.