MNI China Daily Summary: Wednesday, February 12

MNI: PBOC Net Drains CNY139 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1710 Weds; -1.55% Y/Y

MNI China Press Digest Feb 12: Consumers, Autos, FDI

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MNI BRIEF: Fed Would Use QE Only When Rates At Zero - Powell

EZ/UK T-Bill Calendar: 12-Month BOT Auction on Wednesday

MNI: USDA: 2024/2025 CORN PRODUCTION EST 14.87B BSL

EZ/UK Bond Supply Calendar: France Syndication "Near Future"

GERMANY: Economy Ministry Lowers 2025 Growth Forecast As Expected

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

GERMANY: Kukies Considers Potential Non-Implementation Of 2024 Suppl' Budget

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FOREX: Steady USD Trends, Tariff Headlines Only Cause Minor Risk Off

FOREX
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Aggregate G10 FX moves have been modest so far in Tuesday trade. The USD BBDXY index sits around 1304, near end Monday levels from the US session. there was an early slight risk-off tone for markets, which benefited the yen, but follow through did not eventuate. 

  • Early headwinds were dominated by Trump signing tariffs of 25% on steel and aluminium imports. Trump made other remarks in the oval office, stating Tariffs on autos and chips and other areas, including pharmaceuticals will be coming next Trump stated. Reciprocal tariff details will also be released in the next few day, Trump added.
  • US equity futures are lower, although losses are not much beyond 0.20% at this stage. There has been no cash Tsy trading so far today, with Japan markets out. Futures in the Tsy space, are little changed.
  • USD/JPY liquidity has no doubt been lighter, the pair last around 152.00 (range so far today 151.69-152.06).
  • We had Australian consumer and business sentiment readings earlier from Westpac and NAB, but they didn't shift AUD, which was last 0.6270/75. NZD/USD was around 0.5640, also little changed for the session. The AUD/NZD cross is down slightly from recent highs, but still above 1.1100 (last 1.1115/20)
  • USD/CAD is slightly higher, following the earlier tariff news, but at 1.4330/35, remains well within recent ranges.
  • Looking ahead, the US January NFIB small business optimism prints and Fed Chair Powell testifies to the senate and Fed’s Hammack, Williams and Bowman speak. Q4 French unemployment is released and the ECB’s Schnabel appears, and BoE’s Mann & Bailey speak.
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Aggregate G10 FX moves have been modest so far in Tuesday trade. The USD BBDXY index sits around 1304, near end Monday levels from the US session. there was an early slight risk-off tone for markets, which benefited the yen, but follow through did not eventuate. 

  • Early headwinds were dominated by Trump signing tariffs of 25% on steel and aluminium imports. Trump made other remarks in the oval office, stating Tariffs on autos and chips and other areas, including pharmaceuticals will be coming next Trump stated. Reciprocal tariff details will also be released in the next few day, Trump added.
  • US equity futures are lower, although losses are not much beyond 0.20% at this stage. There has been no cash Tsy trading so far today, with Japan markets out. Futures in the Tsy space, are little changed.
  • USD/JPY liquidity has no doubt been lighter, the pair last around 152.00 (range so far today 151.69-152.06).
  • We had Australian consumer and business sentiment readings earlier from Westpac and NAB, but they didn't shift AUD, which was last 0.6270/75. NZD/USD was around 0.5640, also little changed for the session. The AUD/NZD cross is down slightly from recent highs, but still above 1.1100 (last 1.1115/20)
  • USD/CAD is slightly higher, following the earlier tariff news, but at 1.4330/35, remains well within recent ranges.
  • Looking ahead, the US January NFIB small business optimism prints and Fed Chair Powell testifies to the senate and Fed’s Hammack, Williams and Bowman speak. Q4 French unemployment is released and the ECB’s Schnabel appears, and BoE’s Mann & Bailey speak.