MNI: PBOC Net Injects CNY28.8 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Higher At 7.1854 Thurs; -1.13% Y/Y

MNI BRIEF: Ontario To Cut U.S. Energy Flows When Tariffs Hit

MNI: BRAZIL'S COPOM RAISES SELIC RATE BY 100BPS TO 12.25%

MNI BRIEF: US Budget Deficit $367B In Nov; FYTD Record $624B

MNI China Daily Summary: Wednesday, December 11

MNI:AUSTRALIA NOV UNEMPLOYMENT RATE +3.9%

MNI: US NOV TREASURY BUDGET -$366.8B

EZ/UK Bond Supply Calendar: BTP Auction on Thursday

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

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

Risk-Off Keeps Last Week's USD Index High Under Pressure

FOREX
  • The negative close of Wall Street Friday has fed through into Monday's NY crossover, with index futures again pointing lower and indicating more near-term pain for equity longs. The price action has favoured haven currencies so far, with the greenback, CHF and JPY the early beneficiaries.
  • The nearing Fed meeting remains the focal point for markets, with outside expectations that the FOMC will shift to a focus on quantitative tightening as soon as this Wednesday. This has kept the USD Index close to last week's highs, narrowing in on first major resistance at the 96.02 50-dma, a break above which would open gains toward YTD highs of 96.462.
  • The outperformance in the CHF puts the EUR/CHF cross at new cycle lows of 1.0318 and the lowest level since mid-2015, with 1.0315 and 1.0296 the next levels to watch. Markets will continue to speculate over the involvement of the SNB at these levels, which may look to smooth any erratic declines.
  • Risk off trades puts growth and commodity-tied currencies at the bottom of the pile, with AUD, NOK and NZD among the session's poorest performers.
  • Preliminary US PMI data takes focus going forward, with markets expecting both the manufacturing and services metrics to decelerate from the prior. There are no major central bank speakers, with the FOMC remaining in their pre-meeting media blackout period.
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.