MNI INTERVIEW: Fed QT Likely To Linger After Rate Cuts Start

MNI BRIEF: BOE Markets Head Sees Wider Collateral, More Repos

MNI PBOC WATCH: PBOC Cuts 7-Day Rate As Reconfigures Framework

MNI China Daily Summary: Monday, July 22

MNI BRIEF: PBOC Lowers Ceiling of Its Interest Corridor

MNI: PBOC Sets Yuan Parity Higher At 7.1335 Mon; -1.18% Y/Y

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

CBRT Data Watch

NBH Data Watch

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

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

Yen Gains Amid Lower U.S. Tsy Yields, PBOC Repeats Pushback Against Yuan Depreciation

FOREX

The yen took the lead, extending gains over the Tokyo fix, in a slight correction of yesterday's rout. Its outperformance was not disturbed by the fact that e-mini futures turned bid, albeit China tech equities were softer. A tad lower U.S. Tsy yields likely provided some support to the yen, given the strong correlation between U.S./Japan yield gap and USD/JPY price action.

  • In the latest round of jaw-boning, Japanese FinMin Suzuki said that the authorities will monitor moves in U.S. monetary policy and markets.
  • Weak iron ore prices and domestic construction data weighed on the Aussie dollar. Building approvals in Australia shrank 17.2% M/M, missing the consensus call for a 3.0% contraction by a notable margin.
  • The kiwi dollar was the second-worst G10 performer, taking its cue from the Antipodean cousin. AUD/NZD extended its move away from recent cyclical highs and tested the NZ$1.20 mark.
  • The PBOC delivered another pushback against yuan depreciation via a stronger than expected fixing of the USD/CNY mid-point (~250-pip error). Offshore yuan got only brief reprieve and USD/CNH bounced back shortly after.
  • German CPI, EZ sentiment gauges and U.S. Conf. Board Consumer Confidence take focus on the data front today.
  • Comments are due from Fed's Williams & Barkin, ECB's Vasle, Holzmann, Stournaras, Wunsch & Muller as well as Riksbank's Ingves.
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.