DALY SEES 'NO URGENCY TO ADJUST THE POLICY RATE'

MNI BRIEF: Fed’s Collins Sees Rate Cuts Later Than Had Thought

MNI BRIEF: China March M2 Slows More Than Expected

MNI BRIEF: China Tightens Stock Market Supervision

MNI BRIEF: China Mar Exports Jump On Demand; Imports Improve

MNI: PBOC Sets Yuan Parity Lower At 7.0967 Fri; -4.87% Y/Y

MNI: BAKER HUGHES US RIG COUNT 617; OIL RIGS 506; GAS RIGS 109

March Home Sales Jumped At End Of Month

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Risk Comes Under Pressure, Yuan Sell-Off Continues

FOREX

Risk appetite was subdued as the dust settled after Wednesday's hawkish Fed monetary policy decision and a marathon of central bank decisions on "Super Thursday." Japan observed a public holiday, which came in between markets closures in Australia (Thursday) and New Zealand (Monday), limiting regional activity. Riskier currencies sold off as e-mini futures slipped into the red.

  • The likes of USD, JPY and CHF capitalised on their safe-haven status, albeit yen volatility was very limited relative to Thursday, when Japanese authorities intervened in currency markets after the BoJ kept its ultra-loose monetary policy settings unchanged. Heightened risk of repeated intervention on Monday likely gave the yen an edge over its safe-haven peers.
  • Selling pressure hit the Antipodeans, albeit nearby cycle lows in AUD/USD and NZD/USD remained intact. Regional risk barometer AUD/JPY was the big mover overnight, shedding ~45 pips through the session.
  • Yuan depreciation showed no signs of exhaustion, despite the 22nd consecutive stronger-than-expected PBOC fixing. The mid-point of permitted USD/CNY trading band was set 838 pips below sell-side estimate, not enough to promote yuan recovery. Spot USD/CNH climbed to a new cyclical high (CNH7.1134), which may have had knock-on effect on the Antipodeans.
  • Fed's Powell, SNB's Jordan, as well as ECB's Nagel & Kazaks will speak later on Friday. Data highlights include a slew of PMI readings and Canadian retail sales.
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.