Previous session:
Forexlive Americas FX news wrap: Zelensky and Bullard send markets on a ride
Asia:
- China regulators and authorities meeting on iron ore prices
- On Tuesday, the US Senate banking committee is expected to vote on Fed's Powell & more
- US government offers a sovereign loan guarantee to Ukraine of up to US$1bn
- An oil ICYMI - US Permian oil output forecast to hit record high in March
- More on CBA now expecting an earlier RBA rate hike (June vs. previous for August)
- CBA is now forecasting a June 2022 RBA rate hike
- PBOC inject 300bn yuan via a 1 year MLF - rate unchanged at 2.85%
- PBOC sets USD/ CNY reference rate for today at 6.3605 (vs. estimate at 6.3595)
- More from Bank of Japan Governor Kuroda (comments on the yen exhange rate)
- Japan's economy minister says must implment measures to counter rising energy prices
- RBA February meeting minutes - full text
- US State Dept says US citizens should depart Belarus immediately
- BOJ Gov Kuroda says conditions warrant keeping monetary policy loose
- NZD traders - heads up for the GDT dairy auction coming up Tuesday 15 February 2022
- Oil - Barclays raises forecasts by USD7
- Japan GDP preliminary for Q4 2021 +1.3% q/q (vs. expected 1.4%)
- China (state sponsored) financial media says the PBOC may cut rates
- ICYMI - The US is relocating its Ukraine embassy operations from Kyiv to further west
- Goldman Sachs near term bullish USD/JPY
- Australia weekly consumer confidence 103.2 (prior 99.9)
- US regulators have issued subpoenas to Goldman Sachs, Morgan Stanley over block trades
- Canada's PM Trudeau says he has invoked emergency powers to deal with protests
- Trade ideas thread - Tuesday 15 February 2022
- Citi analyst says Russia/Ukraine could push oil above $100/bbl
- Another volatile day with the Dow and S&P lower. The Nasdaq is near unchanged
The focus on Eastern Europe continued during the session here today although new news out of the region was sparse given the timezone. The US State Department did issue advice that US citizens should leave Belarus (see bullets above).
On the central bank front we had:
1. Bank of Japan Governor Kuroda spoke. In a nutshell he said there is no reason to change the current level of loose monetary policy. He defended the BOJ activity in the JGB market yesterday (the Bank offered to buy 10 year bonds in order to reduce the yield, again see bullets for more). Kuroda also indicated he would defend the Bank’s policy to other G20 members, including the side-effect of a weaker yen.
2. The Reserve Bank of Australia released its minutes of the February meeting. Long story short on this (see bullets above again for more) is that the Bank noted that progress is being made towards targets but mentioned, again, its waiting on wage growth acceleration. The minutes have largely been made a little stale by the subsequent SoMP (released Friday Feb. 4) and Governor Lowe’s testimony in parliament (on Friday Feb. 11). As a side note the CBA dragged forward its expectation for the lift-off RBA rate hike to June ‘22 from August.
From China today the People’s Bank of China issued a one year medium term lending facility (MLF) for 300bn yuan. A 200 bn MLF will mature this coming Friday (18th). The rate on today’s MLF was an unchanged 2.85%. There had been some speculation of a cut (the consensus view was for unchanged though). Looking ahead its likely the 1 and 5 year loan prime rates (LPR) to be set on the 20th will also remain unchanged given the steady MLF rate.
Across major FX it was small range session. It was a mixed bag against the USD. EUR and NZD, GBP also are a few points higher. AUD/USD is more or less unchanged on the session after minor moves. USD/JPY and USD/CHF are also little changed after their minor gyrations.
Gold has popped higher again during the session. Investor demand persists with Russia-Ukraine concerns prompting buyers into the metal as a store of value. This despite growing expectations of US Federal Reserve rates hikes imminent in the months ahead.
