- Concern on China's economy mounting with new COVID cases reported near 700
- Yellen is encouraged by discussions with South Korea on Russian oil price cap
- The rate hike due from the European Central Bank this week is inconsequential
- RBA July minutes: RBA is committed to doing what is necessary on inflation
- PBOC sets USD/ CNY central rate at 6.7451 (vs. estimate at 6.7416)
- BlackRock favour China, Japan equities over those in the US, Europe, UK
- Australia weekly consumer confidence survey shows a tiny rise
- Governor of the Bank of England Andrew Bailey is speaking on Tuesday 19 July 2022
- Here's how the US is exporting inflation to the rest of the world
- Goldman Sachs says sources of inflation still remain broad-based, a 'key risk' for policy
- Another crypto trade lost? This simple rule will probably save your ass next time.
- UK Chancellor says can and will get inflation back under control
- ICYMI - Russia's Gazprom has told customers in Europe it cannot guarantee gas supplies
- ANZ forecast a series of 50bp RBA rate hikes (larger can't be ruled out)
- Impending European Central Bank rate hike(s) - pandering to “the politics of inflation”
- Goldman Sachs targetting NZD/CAD towards 0.7850
- Trade ideas thread - Tuesday, 19 July 2022
- Forexlive Americas FX news wrap: Builder sentiment crumbles and so does the early optimism
- Major US indices limp into the close
There was no fresh news of note. Newly diagnosed COVID cases in China continued to rise, nearly 700 were reported for Monday (this follows over 1000 reported for the weekend). More than 40 cities in China are still subject to full or partial lockdowns and restrictions. Shanghai is conduction renewed testing in areas covering 20mn of the city’s 25mn residents.
There was no data of note, a few very minor-tier releases.
From central banks we had the July meeting minutes from the Reserve Bank of Australia. There was nothing of surprise in these, the RBA is on a rate hike path and has further to go. The minutes said the Bank does not know where the neutral rate is (and will not until its overshot!). The Bank also said again it expects the inflation rate to drop back into the target band in 2023. The accuracy of RBA forecasts has been poor, though.
The Australian dollar has led the pack during the session so far. AUD/USD rose f rom under 0.681 0 to highs just shy of 0.6830. NZD/USD has inched a touch higher, USD/CAD just a bit lower. GBP & EUR are barely changed. USD/JPY, meanwhile made highs above 138.30 but is back towards mid-range for the session as I post.
Oil rose a little.
Bitcoin retested its overnight high above $22,800 but pulled back toward $22,000:
