MNI China Daily Summary: Thursday, July 25

MNI BRIEF: Japan Govt Keeps Econ View, Cuts Exports

MNI: PBOC Conducts CNY200 Bln via MLF Thurs; Rate Cut

MNI: PBOC Sets Yuan Parity Lower At 7.1321 Thurs; -1.92% Y/Y

CHINA PBOC CONDUCTS CNY235.1 BILLION VIA 7-DAY REVERSE REPOS THURS

CHINA SETS YUAN CENTRAL PARITY AT 7.1321 THURS VS 7.1358

CBI Price Expectations for Three Months Ahead Lowest Since December 2020

MNI: UK JUL CBI INDUSTRIAL TRENDS TOTAL ORDERS -32

Broad-Based IFO Weakness Reinforces Narrative of Recovery Stall

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

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TRY Firms Following Cautious CBRT Meeting, Markets Eye Higher Summer CPI

TURKEY
  • USD/TRY trades a fraction lower around the open, hovering above 8.5808 support.
  • The cross drifted lower yesterday following the CBRT meeting, aided by a sharp reversal in the BBDXY.
  • Overall, the CBRT meeting saw some minor changes in the statement to convey a higher degree of concern about volatility in the CPI outlook over the summer period, supply-side risks to pricing behaviour and elevated expectations – but fell short of raising the bar on its hawkish guidance.
  • Kavcioglu reiterated that policy would be maintained above inflation until disinflationary factors had taken root.
  • Interestingly, the CBRT noted expectations for a current account surplus for the remainder of the year, which is at odds with many sell-side forecasts.
  • The meeting was a slight non-event, with markets now eagerly awaiting future inflation prints to assess the CBRT's next steps – with the sell-side expecting CPI to peak in the 18-19% range in the coming months.
  • The CBRT is still broadly expected to begin its cut cycle in 4Q21.
  • However, risks surrounding dovish pressure from Erdogan remain ever-present.
  • Intraday Sup1: 8.5808, Sup2: 8.5407, Res1: 8.6399, Res2: 8.6738
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
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MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
BulletEM BulletEmerging Market NewsHomepage

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