- South Korea says North Korea nuclear test not imminent, missile launch prep. continues
- Morgan Stanley neutral on CHF in the near-term, remains core bullish over longer timeframe
- Goldman Sachs forecasts the UK economy entering a recession in Q4 2022
- Australia July retail sales +1.3% m/m (expected 0.3%)
- China coronavirus cases rising on the day again
- PBOC sets USD/ CNY mid-point today at 6.8698 (vs. estimate at 6.8799)
- Bloomberg says iran could release its oil stash if a nuclear deal is agreed to
- USD/CNH highs above 6.91 – what the PBOC will do if yuan weakens even further
- Bitcoin extending its drop below US$20K
- Poll – economists more pessimistic on China’s economy, further lowering 2022 GDP forecasts
- South Korea says will respond to herd-like behaviour in financial markets
- UK Foreign Minister Truss will declare China an official threat
- Forex technical analysis – AUD/USD bearish outside candle on Friday
- US equity index futures are following through with a lower open
- US’ Kirby says ‘certainly’ closer to Iran nuclear deal than 2 weeks ago, Iran concessions
- 4 ECB speakers over the weekend: concerns expressed on low EUR, & Sept rate hike forecast
- Heads up for UK market closures Monday, 29 August 2022
- BOJ Kuroda says again that inflation in Japan is transitory
- ECB’s Villeroy de Galhau forecasts ‘significant’ Sept. rate hike, & to neutral by year end
- ECB’s Rehn concerned about the falling euro: Certainly we are monitoring the exchange rate
- Trade ideas thread – Monday, 29 August 2022
- ECB’s Schnabel says rates must be raised, even into a recession
- ECB’s Kazaks says he is not happy with the lower EUR (euro)
- Monday morning open levels – indicative forex prices – Monday, 29 August 2022
- Ethereum technical analysis ETHUSD at $1500, what’s next?
- The weekend Forex report for the week starting August 29, 2022: Fed’s Powell gets serious.
- Newsquawk Week Ahead – Highlights: US jobs report, ISM; China PMIs; EZ inflation
- Profits at China’s industrial firms fell 1.1% in January-July y/y (prior +1.0%)
- Risk a little to make more than a little
There
were continuation moves during the timezone here today to open the
week. On Friday Fed Chair Powell sent the USD higher and equity
indexes lower with his speech promising ‘forceful’ Federal
Reserve action to come. The USD climbed again here today and equities
fell (Asian equities played catch up (catch down is a better
description), US equity index futures dropped further).
Over
the weekend we had speeches from ECB officials (see bullets above)
expressing concern over the falling euro (its fuelling eurozone
inflation) and also promising their own commitment to higher rates
yet to come.
Bank
of Japan Kuroda, too, spoke over the weekend. He reiterated, yet
again, that the BOJ believes the current high CPI levels in Japan are
transitory and there are no reasons for the Bank to tighten policy.
USD/JPY
was a strong mover on the session, to highs above 138.50.
The
USD strengthened more broadly too against other major FX.