CORRECTED-MNI: Fed's Hammack-Near Or At Time To Slow Rate Cuts

MNI BRIEF: Fed's Goolsbee Sees Rates Fair Bit Lower In A Year

CANADA JOBLESS RATE +6.8% VS FORECAST +6.6%, PRIOR +6.5%

MNI China Daily Summary: Friday, December 6

MNI: PBOC Net Drains CNY288.1 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Lower At 7.1848 Fri; -1.64% Y/Y

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT PRELIMINARY DEC INDEX 74.0

CANADA NOV IVEY PURCHASING MANAGERS INDEX 52.3 SA

EZ/UK Bond Supply Calendar: Austria, UK Auction on Tuesday

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

USD/CNH Back To Low 6.6900 Region, Caveats On Stimulus

CNH

After USD/CNH couldn't breach 6.7200 early yesterday, we tracked lower, getting close to 6.6900 late in NY trading. We currently trade around 6.6940.

  • Much of the focus rested on China's proposed $220bn (1.5 trillion yuan) stimulus boost, whereby local governments can bring forward special bond sales from 2023 to the second half of this year.
  • While clearly a positive development, some analysts have highlighted important caveats. Firstly, it could leave a fiscal cliff in 2023. Secondly, special purpose bond issuance needs to be tied to a specific project, so the stimulus could take a while to implement. Infrastructure investment is also less resource intensive compared to previous cycles.
  • Nevertheless, anything that aids the China outlook can still underpin the outperformance theme. This week has seen some reversal in equities outperformance, with major developed market equities seeing some positive impetus.
  • CNH resilience persists though, with USD/CNH flat on the week versus the DXY's 1.75% gain so far.
  • On the Covid front, Shanghai reported a further 45 cases yesterday, down slightly from Wednesday's number, although no cases were found outside quarantine. Beijing reported no new local cases yesterday.
  • The data calendar is quiet today, but tomorrow delivers PPI and CPI prints for June. PPI is expected to ease to 6.4% from 6.0%, but CPI is forecast to rise to 2.4%, versus 2.1% previously. Note from Saturday onwards aggregate financing and new loans for June are also due. Further gains are expected In both prints (agg finance to 4192.5bn yuan versus 2792.1bn previously, and new loans to 2400bn yuan from 1883.6bn yuan).
  • Also note that US President Biden will reportedly meet with economic advisors on Friday (US time) to discuss possible tariff reductions.
EM BulletHomepagemarkets-real-timeEmerging Market NewsCommoditiesBulletMarketsFixed Income BulletsForeign Exchange Bullets
EM BulletHomepagemarkets-real-timeEmerging Market NewsCommoditiesBulletMarketsFixed Income BulletsForeign Exchange Bullets

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.