- +50bp rate hike expected from the RBA at its next meeting on August 2
- Australia data - Westpac leading index (June) fell, but still indicates trend growth
- ICYMI - China boycotts on mortgage payments spread across at least 301 projects, 91 cities
- China reported more than 1,000 new COVID cases today for the first time since May 20
- PBOC sets USD/ CNY mid-point today at 6.7465 (vs. estimate at 6.7445)
- People's Bank of China loan prime rates (LPR) setting for July 2022: rates unchanged
- Chinese Premier Li Keqiang signaled flexibility on the economic growth rate
- Goldman Sachs reiterates its view that Russia will return gas to Nordstream at just 40%
- 5 reasons for the disconnect between markets and inflation (it won't fall any time soon)
- RBA Gov. Lowe says inflation heading as high as 7% ... going to have to increase rates
- RBA Gov. Lowe says he sees further 'step up'' for the CPI for Q2 and later this year
- Reserve Bank of Australia Governor Lowe speaking - live link
- ICYMI - Australian government announced the RBA review terms on Tuesday
- Preview - Canadian inflation data is due on Wednesday, 20 July 2022
- Big Thursday (ECB) coming up in Europe, But Wednesday could be bigger - Will Draghi bail?
- Morgan Stanley are neutral on GBP but expect GBP/USD to trend even lower
- Putin says a turbine from Nordstream 1 expected to shut for maintenance later this month
- Forexlive Americas FX news wrap: USD falls and helps risk-on flows
- Putin says the US has basically removed curbs for Russian fertilizer exports
- ICYMI - Goldman Sachs forecasting a Federal Reserve terminal rate in the mid-3% range
- Private survey of oil inventory survey shows larger than expected headline build
- Trade ideas thread - Wednesday, 20 July 2022
Movement for GBP and yen on the session.
There was news and data about, notably:
- Russia’s Putin said the gas pipeline will come back online as scheduled
- Goldman Sachs, though, expect gas flows to Europe at only 40% of capacity. GS had published this projection in early July but reiterated it.
- Comments by China’s Premier Li Keqiang indicated China would lower its GDP forecast, or at least accept not hitting the current government target
- The PBOC set its loan prime rates (the Bank sets these monthly) unchanged
- Reserve Bank of Australia Governor Lowe indicated he expected the cash rate to rise to at least 2.5%, and inflation as high as 6 to 7%. He didn’t have anything explicit to say on the prospects of +75bp rate move at the August 2 meeting
- China reported over 1,000 new coronavirus cases for July 19, the first time above 1K since May 20
Major FX rates were mixed.
- USD/JPY moved higher earlier, briefly above 138.30 and then losing ground to dip under 138.00. Its just above as I update.
- Cable ticked steadily higher, from lows around 1.2000 to 1.2030. NZD/USD followed a similar pattern.
- USD/CAD ground out a small loss.
- EUR/USD and AUD/USD are wee bit better bid but neither have moved much higher.
Asain equities generally caught a bid from the strong upmoves on Wall Street on Tuesday.
