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 Lures Participants With Risk Appetite Damped By China's Commitment To COVID Zero

FOREX

Risk aversion took hold as China's National Health Commission vowed to "unswervingly" stick to the COVID Zero Strategy, pushing back against re-opening speculation from last week. Spot USD/CNH traded on a firmer footing as the greenback outperformed. The BBDXY index added 0.2% as U.S. Tsy yield curve twist flattened.

  • The PBOC paused a streak of stronger-than-expected USD/CNY mid-point fixings after a nearly 2% drop in USD/CNH last Friday. The pair's reaction to the re-introduction of weakening bias into the fixing for the first time since late August was limited, with the redback already pressured by COVID Zero musings.
  • The Antipodeans led the high-beta FX bloc lower on a negative lead from China, even as the aggregate BBG Commodity Index lodged some marginal gains, breaking above its 100-DMA. AUD/NZD see-sawed, having a look above Friday's high in the process, before stabilising near neutral levels.
  • The yen lagged its safe haven peers USD and CHF, with U.S./Japan 2-year yield differential widening 1.8bp. Spot USD/JPY returned above the Y147 mark, with local media flagging continued political headwinds for PM Kishida's government.
  • Focus turns to German & Norwegian industrial output figures, as well as comments from Fed's Collins & Barkin, ECB's Lagarde & Panetta.
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.