MNI China Daily Summary: Friday, April 26

MNI BRIEF: China, US Should Strengthen Dialogue, Cooperation

MNI BRIEF: SNB Framework Reform 'Playing With Fire' - Steiner

MNI: PBOC Conducts CNY2 Bln Via OMO Fri; Liquidity Unchanged

CHINA PBOC INJECTS CNY2 BILLION VIA 7-DAY REVERSE REPOS FRI

MNI: PBOC Sets Yuan Parity Lower At 7.1056 Fri; -4.56% Y/Y

MNI: BAKER HUGHES US RIG COUNT 613; OIL RIGS 506; GAS RIGS 105

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT FINAL APR INDEX 77.2

EZ/UK T-Bill Calendar: Germany, France Auction on Monday

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

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

© 1982-2023 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Yield Bounce Saves USD From Further Declines

FOREX
Homepagemarkets-real-timeBulletMarketsFixed Income BulletsForeign Exchange Bullets
  • Currency markets traded rangebound Thursday, with the USD Index respecting the recent range and largely consolidating just below this week's cycle high at 106.517. The session started slowly, with the USD lower, before a bottoming-out of the US yield followed comments from Fed's Williams, who stressed that he sees no urgency in pressing the Fed toward cutting interest rates, and that policy is in a "good place".
  • Fed rate cut pricing across 2024 approached a new pullback low through the NY crossover, with just 38bps of easing priced across the calendar year - enough to drag the USD out of negative territory, but stop short of any formative rally.
  • USD/JPY mimicked the recovery in yields, but failed to make any material test on next resistance. While the technical trend condition in USD/JPY remains positive, the next phase of strength could be harder to come by without another major shift in Fed policy pricing, as positioning looks stretched and diplomatic blockers to potential intervention appear to peel away.
  • CAD outperformed at the margins, fading the overbought condition present earlier in the week. An uptick in oil through the London close aided the recovery, however for now weakness in USD/CAD is deemed corrective. Support is seen at 1.3682 (Apr 12 low) whilst is resistance at 1.3846 (Apr 16 high) before 1.3855 (Nov 10, 2023 high).
  • Focus for the Friday session turns to the National CPI release for March, UK retail sales, German PPI and speeches from BoE's Ramsden & Mann, ECB's Nagel and Fed's Goolsbee.
249 words

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.
  • Currency markets traded rangebound Thursday, with the USD Index respecting the recent range and largely consolidating just below this week's cycle high at 106.517. The session started slowly, with the USD lower, before a bottoming-out of the US yield followed comments from Fed's Williams, who stressed that he sees no urgency in pressing the Fed toward cutting interest rates, and that policy is in a "good place".
  • Fed rate cut pricing across 2024 approached a new pullback low through the NY crossover, with just 38bps of easing priced across the calendar year - enough to drag the USD out of negative territory, but stop short of any formative rally.
  • USD/JPY mimicked the recovery in yields, but failed to make any material test on next resistance. While the technical trend condition in USD/JPY remains positive, the next phase of strength could be harder to come by without another major shift in Fed policy pricing, as positioning looks stretched and diplomatic blockers to potential intervention appear to peel away.
  • CAD outperformed at the margins, fading the overbought condition present earlier in the week. An uptick in oil through the London close aided the recovery, however for now weakness in USD/CAD is deemed corrective. Support is seen at 1.3682 (Apr 12 low) whilst is resistance at 1.3846 (Apr 16 high) before 1.3855 (Nov 10, 2023 high).
  • Focus for the Friday session turns to the National CPI release for March, UK retail sales, German PPI and speeches from BoE's Ramsden & Mann, ECB's Nagel and Fed's Goolsbee.