302084 March 30, 2023 12:09 Forexlive Latest News Market News
Despite bond yields advancing on Tuesday, the pair fell before rebounding in trading yesterday as yields continue to hold higher on the week so far. I outlined that here yesterday, noting that price action is adjusting accordingly to sentiment in the bond market.
After the notable moves in the past two days, USD/JPY is pretty much back in line now and trading back in and around its typical correlation to 10-year Treasury yields.
As such, don’t expect too much outsized moves later in the session ahead unless either the bond market starts to run and/or the US dollar itself finds a reason to stretch out against the rest of the major currencies bloc.
Looking ahead, inflation data in Germany and Spain today will be ones to watch as potential catalysts for rates action. But keep an eye out on flow-based movements as well, with month-end and quarter-end trading in consideration too.Full Article
302077 March 30, 2023 11:02 Forexlive Latest News Market News
was a quiet day for news of any impact and data flow was light also.
Australia we had job vacancy data. These recorded their third q/q
fall but remain historically super-high. Also today relevant to
Australian labour markets was the country’s peak trade union body
submitted a proposal for a 7% minimum wage rise. Australia’s
government supports the idea of a minimum wage hike but didn’t
comment on the specific 7% number. A decision on the minimum wage
level is expected in June. There will be a rise, circa 5% seems to be
RBA will be eyeing the potential for wages boosting inflation.
Speaking of the Reserve Bank of Australia, their meeting is next
week, April 4. Three of Australia’s four big banks are now
expecting a pause with ANZ the hold out at forecasting a +25bp rate
the Australian dollar, it has dribbled lower on the session but got a
minor pop from its low coinciding with reassuring comments from
China’s new Premier Li Qiang at the Boao Forum in Hainan.
Nikkei 225 -0.7%
Shanghai Composite -0.4%
Kong’s Hang Seng -0.4%
Korea’s KOSPI +0.46%
S&P/ASX 200 +1.05%
302074 March 30, 2023 10:40 Forexlive Latest News Market News
China’s Premier Li Qiang is speaking at the Boao Forum, plenty of reassuring comments.
302039 March 30, 2023 08:05 Forexlive Latest News Market News
China will strengthen macro policy adjustments and unleash the potential of consumption and investment, Chinese state radio cited China’s Premier Li Qiang was cited on state media as saying
Li Qiang’s comments were made at the Boao Forum For Asia in China’s southern province of Hainan on Wednesday.
USD/CNH update, the rise driven by month and quarter end flows, and the souring of ‘risk’ attractiveness. these factors are expected to diminish and thus the rally:Full Article
302025 March 30, 2023 07:40 Forexlive Latest News Market News
Via a note issued by analysts in UBS’ Shanghai office, a snippet:
ie UBS like consumer stocks
302020 March 30, 2023 07:09 Forexlive Latest News Market News
Society of Motor Manufacturers and Traders (SMMT) data conveyed via Reuters:
302014 March 30, 2023 06:56 Forexlive Latest News Market News
Barclays says that the ‘first wave’ of the run was related to solvency fears. That wave may be almost over. But ….
Barclays graph on the upswing of funds into money funds:
You’d have to think that what Barclays is calling a ‘second wave’ will not be an urgent bank run, its not based on solvency fears.Full Article
301987 March 30, 2023 05:40 Forexlive Latest News Market News
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301985 March 30, 2023 04:45 Forexlive Latest News Market News
In the simplest terms, it was a strong day for risk trades today and that meant yen selling, and ultimately heavy yen selling. US regional banks were generally treading water but it was another day without any of them failing and you have to assume that deposit outflows are slowing.
USD/JPY ends the day up 200 pips to 132.87 as it rapidly chews into the March swoon. It didn’t get much help from the Treasury complex where 2-year yields rose only 3 bps. It was the same across the board as the yen sank.
Otherwise, it wasn’t the straight-forward kind of ‘risk on’ trade you might expect. For one, the antipodeans struggled. AUD and NZD tried the upside early in US trading but both faded. On the other hand, the loonie was able to sustain a bid despite a reversal lower in crude prices.
Cable has generally tracked risk assets but didn’t today as it rose to 1.2360 early in Europe and then gave it all back to finish 20 pips lower. The euro also made a move higher only to fall back and finish flat on the day.
In terms of news, there was nothing meaningful to chew on but pending home sales were another housing data point that beat on the upside. The US auction probably helped USD/JPY as well but it was largely a news-free day of trading with quarter-end flows a much bigger part of the equation.Full Article
301984 March 30, 2023 04:40 Forexlive Latest News Market News
Via a report from Fitch, in brief:
A record five Fitch-rated sovereigns are in default:
There have been 14 separate default events since 2020, across nine different sovereigns
compared with 19 defaults across 13 different countries between 2000 and 2019.
Fitch adds this:
Fitch cites sovereign borrowing costs ramping higher.