ForexLive Asia-Pacific FX news wrap: Subdued ranges heading into the US market holiday
Barclays slashed their Brent Crude oil price forecast by $8 a barrelWSJ survey of economists indicates that the probability of a US recession is down sharplyHousehold spending in Australia, December, -3.1% m/m (prior +1.8%)Reports Qatar appears to have stopped sending LNG tankers through Bab el-Mandeb StraitJP Morgan's CEO Dimon warns inflation may be stickier, rates higher, than markets expectOil - Houthis fired an anti-ship cruise missile at a US Navy shipMr. JGB: Japan's stable inflation target achievable in 2024, but not in the way BOJ thinksPeople's Bank of China left its MLF rate unchanged - recapSchumer says US congressional leaders have agree to a stopgap funding measurePeople's Bank of China set MLF rate at 2.5% (prior 2.5%)Japan's 2 year yield has dropped back under zero, first time since July 2023PBOC sets USD/ CNY reference rate for today at 7.1084 (vs. estimate at 7.1684)Australian private survey of inflation soared by 1% m/m in December, the most in 17 monthsTaiwan's Presidential election: Pro-sovereignty DPP's William Lai winsPeople's Bank of China interest rate cut expected todayUBS targets higher for the S&P 500, sees strong earnings, strong economySix arrested in plot to shut down the London Stock ExchangeBarclays moved its forecast for the first Federal Reserve rate cut to March (from June)Weekend: ECB chief economist Philip Lane nominates June 'key data' for rate cutsWeekend: Ex-PBoC official says China’s property downturn may continue for two more yearsTrade ideas thread - Monday, 15 January, insightful charts, technical analysis, ideasMonday morning open levels - indicative forex prices - 15 January 2024Weekly Market Outlook (15-19 January)Why the bitcoin ETF inflows are a huge disappointment It was a day of light market news flow only, although there were some potentially significant items for energy markets:there are reports that Qatar has stopped its shipments of LNG through the Bab el-Mandeb Strait (and thus the Suez Canal)Houthis fired a cruise missile at a US Navy shipIf you take a glance at the oil price its up, but barely noticeable. In political news we hadthe Saturday election in Taiwan saw William Lai, of the pro-sovereignty Democratic Progressive Party (DPP), elected President, although the party did lose its parliamentary majorityUS Senate Democratic leader Schumer said congressional leaders have agreed to a stopgap funding measureIn central bank developments, the People’s Bank of China set the rate on this month’s Medium-term Lending Facility (MLF) at an unchanged rate of 2.5% despite wide (but not unanimous) expectations of a 10bp cut. This despite continued disinflation in China and is reflective of the concern the PBoC have of yuan weakness prompting capital outflow.USD/JPY rose on the session, the drop in 2-year Japanese Government Bond yields back below zero weighed on the yen. It was a mixed bag across the major currencies. The USD was net weaker against the EUR, GBP and CAD. AUD and NZD underperformed.Offshore yuan is higher on the session. This article was written by Eamonn Sheridan at www.forexlive.com.
- Barclays slashed their Brent Crude oil price forecast by $8 a barrel
- WSJ survey of economists indicates that the probability of a US recession is down sharply
- Household spending in Australia, December, -3.1% m/m (prior +1.8%)
- Reports Qatar appears to have stopped sending LNG tankers through Bab el-Mandeb Strait
- JP Morgan's CEO Dimon warns inflation may be stickier, rates higher, than markets expect
- Oil - Houthis fired an anti-ship cruise missile at a US Navy ship
- Mr. JGB: Japan's stable inflation target achievable in 2024, but not in the way BOJ thinks
- People's Bank of China left its MLF rate unchanged - recap
- Schumer says US congressional leaders have agree to a stopgap funding measure
- People's Bank of China set MLF rate at 2.5% (prior 2.5%)
- Japan's 2 year yield has dropped back under zero, first time since July 2023
- PBOC sets USD/ CNY reference rate for today at 7.1084 (vs. estimate at 7.1684)
- Australian private survey of inflation soared by 1% m/m in December, the most in 17 months
- Taiwan's Presidential election: Pro-sovereignty DPP's William Lai wins
- People's Bank of China interest rate cut expected today
- UBS targets higher for the S&P 500, sees strong earnings, strong economy
- Six arrested in plot to shut down the London Stock Exchange
- Barclays moved its forecast for the first Federal Reserve rate cut to March (from June)
- Weekend: ECB chief economist Philip Lane nominates June 'key data' for rate cuts
- Weekend: Ex-PBoC official says China’s property downturn may continue for two more years
- Trade ideas thread - Monday, 15 January, insightful charts, technical analysis, ideas
- Monday morning open levels - indicative forex prices - 15 January 2024
- Weekly Market Outlook (15-19 January)
- Why the bitcoin ETF inflows are a huge disappointment
It was a day of light market news flow only, although there were some potentially significant items for energy markets:
- there are reports that Qatar has stopped its shipments of LNG through the Bab el-Mandeb Strait (and thus the Suez Canal)
- Houthis fired a cruise missile at a US Navy ship
If you take a glance at the oil price its up, but barely noticeable.
In political news we had
- the Saturday election in Taiwan saw William Lai, of the pro-sovereignty Democratic Progressive Party (DPP), elected President, although the party did lose its parliamentary majority
- US Senate Democratic leader Schumer said congressional leaders have agreed to a stopgap funding measure
In central bank developments, the People’s Bank of China set the rate on this month’s Medium-term Lending Facility (MLF) at an unchanged rate of 2.5% despite wide (but not unanimous) expectations of a 10bp cut. This despite continued disinflation in China and is reflective of the concern the PBoC have of yuan weakness prompting capital outflow.
USD/JPY rose on the session, the drop in 2-year Japanese Government Bond yields back below zero weighed on the yen. It was a mixed bag across the major currencies. The USD was net weaker against the EUR, GBP and CAD. AUD and NZD underperformed.
Offshore yuan is higher on the session. This article was written by Eamonn Sheridan at www.forexlive.com.
