Free Trial
AUSSIE BONDS

Paring Initial Bid

USDJPY TECHS

Resumes Its Uptrend

UK

Timeline of key events (Times BST)

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

Risk Aversion Takes Hold As Shanghai Covid Hopes Get Quashed By Community Cases

FOREX

Risk-off flows have taken hold as Shanghai's latest Covid-19 case count nipped hopes for imminent relaxation of curbs in the bud. The Chinese megacity found two cases in the community, which effectively stops the three-day countdown to the moment when the authorities would be able to ease curbs. For this to happen, the city must record three consecutive days of zero community transmission of the virus. Headlines on Shanghai's Covid-19 situation were followed by the news that North Korea has moved to lock down all of its cities after confirming its (allegedly) first coronavirus infection.

  • Adding to the broader sense of concern were signs of continued distress in China's property market, as developer Sunac said it doesn't expect to make interest payments on its Oct 2023 bond and other senior notes.
  • G10 currency pairs trade in a characteristically risk-off manner. The Antipodeans have lost ground, while traditional safe havens sit at the top of the performance table.
  • Risk barometer AUD/JPY sank to its worst levels since Mar 22, breaking firmly below the Y90.00 figure, but USD/JPY has not yet tested yesterday's low.
  • The kiwi dollar already underperformed earlier in the session as participants positioned ahead of the release of quarterly RBNZ report on inflation expectations.
  • After Asia hours, focus will turn to UK GDP (flash) & Swedish CPI as well as U.S. PPI & weekly jobless claims.
  • Central bank speaker slate features ECB's de Cos & Makhlouf as well as Riksbank's Ingves.
236 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Risk-off flows have taken hold as Shanghai's latest Covid-19 case count nipped hopes for imminent relaxation of curbs in the bud. The Chinese megacity found two cases in the community, which effectively stops the three-day countdown to the moment when the authorities would be able to ease curbs. For this to happen, the city must record three consecutive days of zero community transmission of the virus. Headlines on Shanghai's Covid-19 situation were followed by the news that North Korea has moved to lock down all of its cities after confirming its (allegedly) first coronavirus infection.

  • Adding to the broader sense of concern were signs of continued distress in China's property market, as developer Sunac said it doesn't expect to make interest payments on its Oct 2023 bond and other senior notes.
  • G10 currency pairs trade in a characteristically risk-off manner. The Antipodeans have lost ground, while traditional safe havens sit at the top of the performance table.
  • Risk barometer AUD/JPY sank to its worst levels since Mar 22, breaking firmly below the Y90.00 figure, but USD/JPY has not yet tested yesterday's low.
  • The kiwi dollar already underperformed earlier in the session as participants positioned ahead of the release of quarterly RBNZ report on inflation expectations.
  • After Asia hours, focus will turn to UK GDP (flash) & Swedish CPI as well as U.S. PPI & weekly jobless claims.
  • Central bank speaker slate features ECB's de Cos & Makhlouf as well as Riksbank's Ingves.