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

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

USD Index Further Pares Post-CPI Advance

FOREX
  • Hotter-than-expected US CPI prompted a near 1% rally for the USD index early in the week. However, as major equity indices steadily recovered their post-data selloff, the greenback has pared the majority of that move, leaving the DXY up just 0.10% as we approach the week's close.
  • On Friday, major currency ranges remained contained once more, despite an above-estimate surprise for US PPI prompting a very brief bout of greenback strength. Continued supportive price action for equities has weighed on the USD index, which now tilts into negative territory on the day. In similar price action to Thursday’s session, AUD and NZD are outperforming amid the bolstered risk sentiment across global markets.
  • Corrective bounce in AUD/USD extended through the London close, with markets happy to buy the post-PPI dip and tip prices through both pre-data levels as well as the Friday highs. Strength into the weekly close saw the move close in on 0.6546, the 20-day EMA, and signals scope for a larger move towards key resistance at the Jan 30 high of 0.6625.
  • EURUSD rose in line with the moves for the greenback, extending above its initial resistance point of 1.0750 (50% retracement for this week's downleg) and has continued to narrow the gap to the 50-dma which resides at 1.0798.
  • USDJPY reached as high as 150.65 on the data from the earlier 149.83 lows, but has since settled around mid-range and just above the psychological 150.00 mark.
  • President’s Day on Monday turns the focus straight to the RBA minutes and Canadian CPI on Tuesday. The FOMC minutes and European Flash PMIs will be highlights on the docket later in the week.
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.