MNI China Daily Summary: Wednesday, July 10

MNI BRIEF: China To Investigate EU Trade Actions

MNI BRIEF: China June CPI Hits Three Month Low

MNI: PBOC Conducts CNY2 Bln Via OMO Weds; Liquidity Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS WEDS

MNI: PBOC Sets Yuan Parity Higher At 7.1342 Weds; -0.53% Y/Y

MNI JAPAN MAY CORE MACHINE ORDERS -3.2% M/M; APRIL -2.9%

EZ/UK T-Bill Calendar: 1/3/6-Month UKTB Auction on Friday

EZ/UK Bond Supply Calendar: Italy, UK Auction on Thursday

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

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

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TRY Momentum Slows as Crucial CPI, PPI Data Comes Into Focus

TURKEY
  • USD/TRY trades -0.17% lower around the open, broadly tracking the BBDXY in early trading.
  • The cross diverged from yesterday's trend of firmer EM FX, with TRY bulls getting jumpy around 8.33 support – a fraction above the 03 August swing lows.
  • Momentum in the cross appears to be stalling somewhat in the 8.40-8.30 zone as CPI data comes into focus – with CBRT policy coming to a key breaking point if headline prints above the 1-wk repo at 19.00%.
  • As noted yesterday, sell-side expectations for CPI have moderated this week from above 19% to roughly 18.2-18.8% - providing the CBRT space for another month on hold, should the data print in line with expectations.
  • However, risks remain to the upside with the CBRT expecting volatility in CPI over the summer period – making this a pivotal CPI reading for the policy trajectory and credibility of the central bank, should it not deliver a rate hike to offset inflation above the 1-wk repo.
  • USD/TRY has been helped lower by USD side weakness, but positioning remains light ahead of this week.
  • Intraday Sup1: 8.3330, Sup2: 8.2969, Res1: 8.4021, Res2: 8.4533
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
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