MNI China Daily Summary: Wednesday, December 11

MNI BRIEF: Chinese Rail Passenger Numbers Break Record

MNI: PBOC Net Injects CNY37.3 Bln via OMO Wednesday

MNI: PBOC Sets Yuan Parity Lower At 7.1843 Weds; -1.22% Y/Y

MNI BRIEF: Brazil Not Even Close To Fiscal Dominance - David

CORRECTED-MNI BRIEF: Brazil Inflation Rises To 4.87% In Nov

MNI: US MBA: MARKET COMPOSITE +5.4% SA THRU DEC 06 WK

EZ/UK Bond Supply Calendar: 4.25% Jul-34 Gilt Due Wednesday

EZ/UK T-Bill Calendar: 12-Month BOT Auction on Wednesday

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

Wilting Risk Sentiment Buoys Greenback As Markets Await Putin Address

FOREX
  • Equities have retraced the entirety of Monday’s bounce, largely reflecting reports that Russian President, Vladimir Putin could be on the bring of performing two key actions in an imminent address to the nation.
  • The measures that have been outlined include enacting mobilisation measures, combined with annexing territory through sham referenda. Both appear to be in response to a Ukrainian counteroffensive which liberated territories in the northeast of the country.
  • With equities trading on the backfoot throughout both European and US trading sessions, the greenback has been steadily supported with the USD index (+0.45%) rising to the best levels of the week and narrowing in on cycle highs at 110.78 as we approach the Fed decision on Wednesday.
  • In line with the weaker sentiment across equity markets, the likes of EUR, GBP and AUD have all traded on the backfoot, however NZD and CAD are the poorest performers on Wednesday.
  • NZDUSD has plummeted over 1% as overnight NZ 2-Year swaps extended their move away from three-month highs, despite the absence of notable local catalysts. Weakness gathered momentum below cycle lows printed Monday at $0.5930, with the pair trading as low as 0.5886.
    • Potentially exacerbating the Kiwi weakness, AUD/NZD breached the NZ$1.1300 mark on its way to NZ$1.1364, the highest point since July 2015.
  • Lower-than-expected Canadian inflation data sparked further weakness for the Canadian dollar. After a corrective pullback yesterday, USDCAD (+0.86%) has resumed its upward trajectory, breaking to fresh cycle highs of 1.3375 with initial resistance eyed at 1.3409 (2.0% 10-dma envelope) and 1.3421 (Sep 30, 2020 high).
  • Potential comments from RBA Deputy Governor Bullock overnight. Minor data of UK public sector net borrowing and US existing home sales will act as a warm-up to the September FOMC decision and accompanying summary of economic projections.
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.