MNI BRIEF: China Visitor Mobile Payments Surge in H1

MNI China Daily Summary: Friday, July 26

MNI BRIEF: Foreign Firms Content In China

MNI BRIEF: Turkish Inflation Expectations Steady- TEBA

MNI China Press Digest July 26: Deposit Rates, Fiscal, PBOC

MNI: PBOC Net Injects CNY299.05 Bln via OMO Fri

MNI: BAKER HUGHES US RIG COUNT 589; OIL RIGS 482; GAS RIGS 101

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL JUL INDEX 66.4

EZ/UK Bond Supply Calendar: BoE Short APF Operation on Monday

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

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

Substantial Greenback Turnaround, Swiss Franc Surges

FOREX
  • The greenback has had a substantial turnaround on Thursday, with the USD index sinking to two-week lows and broad strength witnessed across the majority of G10 currencies. The Swiss Franc was the notable outperformer, amid hawkish comments from the Governor of the Swiss National Bank.
  • USDCHF looks set to post an intra-day 1.10% decline as the pair consolidates around the 0.90 handle approaching the APAC crossover. The impressive CHF move comes following more hawkish remarks from SNB Governor Thomas Jordan. The central bank chief highlighted that “we have second-round effects, third-round effects, so inflation is more persistent than we initially thought”. Jordan also noted that Swiss interest rates are relatively low, so it doesn’t make sense to wait which have exacerbated the CHF rally.
  • USD/CHF has significantly narrowed the gap with the 50-dma at 0.8993 - with the pair notably breaking the below the uptrendline drawn off the early May lows of 0.8820.
  • The Canadian dollar has bucked the trend, underperforming its G10 counterparts despite the BOC’s hawkish surprise on Wednesday and some analysts bolstering their calls for a weaker USDCAD. TD see a break below 1.33 as the path of least resistance, with a best case from a benign US CPI and the Fed skipping a June hike next week helping CAD outperform most G10 crosses, Scotia see fundamental fair value settling closer to 1.32, and ING see quite elevated chances it hits 1.30 this summer.
  • Elsewhere, the likes of the Euro, GBP, JPY, AUD and NZD are all rising between 0.75-0.90% amid the softer greenback, with the price action underpinned by the weaker US initial jobless claims data and moderately firmer global equity benchmarks. Of note, cable has made a break of key resistance at 1.2545. Progress and a close through here could begin to signal a bottoming out of prices, with 1.2592 next up, a Fibonacci retracement and 1.2680 remaining the key topside level.
  • Chinese PPI/CPI data is due overnight on Friday, with Canada employment the key release to close the week. All eyes remain focused on the US CPI print next Tuesday, which precedes the June FOMC decision.
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.