MNI China Daily Summary: Wednesday, July 3

MNI BRIEF:BOJ Q1 Output Gap Hits 16th Negative Reading In Row

MNI: PBOC Sets Yuan Parity Higher At 7.1312 Weds; -0.34% Y/Y

MNI: PBOC Net Drains CNY248 Bln Via OMO Weds; Rates Unchanged

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

CHINA SETS YUAN CENTRAL PARITY AT 7.1312 WEDS VS 7.1291

MNI: US MBA: MARKET COMPOSITE -2.6% SA THRU JUN 28 WK

US MBA: REFIS -2% SA; PURCH INDEX -3% SA THRU JUNE 28 WK

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

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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USDCAD Bucks Post-Payrolls Clearance Of Bull Trigger

CANADA
Homepagemarkets-real-timeBulletMarketsForeign Exchange Bullets Bank of Canada Market News
  • USDCAD briefly touched a low of 1.3547 on the latest extension of USD weakness before lifting ~20pips.
  • The bounce off session lows came with a sharp reversal of earlier gains in S&P e-minis after the cash open, although correlation between the two has been unusually low in absolute terms over the past twenty days.
  • Post-payrolls clearance of a congested bull trigger at 1.3614 (multiple Mar highs) has paved the way higher but for now we await tomorrow’s US CPI report before the BoC decision just 75mins later.
  • BoC Preview in case missed: https://roar-assets-auto.rbl.ms/files/60782/BOCPreviewApr2024.pdf
  • The USD weakness sees CAD firmly underperform other high beta peers, not helped by only consolidating yesterday’s further decline in Can-US 2Y yield differentials at -55bps for some of the lowest levels in recent months.

Source: Bloomberg

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  • USDCAD briefly touched a low of 1.3547 on the latest extension of USD weakness before lifting ~20pips.
  • The bounce off session lows came with a sharp reversal of earlier gains in S&P e-minis after the cash open, although correlation between the two has been unusually low in absolute terms over the past twenty days.
  • Post-payrolls clearance of a congested bull trigger at 1.3614 (multiple Mar highs) has paved the way higher but for now we await tomorrow’s US CPI report before the BoC decision just 75mins later.
  • BoC Preview in case missed: https://roar-assets-auto.rbl.ms/files/60782/BOCPreviewApr2024.pdf
  • The USD weakness sees CAD firmly underperform other high beta peers, not helped by only consolidating yesterday’s further decline in Can-US 2Y yield differentials at -55bps for some of the lowest levels in recent months.

Source: Bloomberg