- Japan chief cabinet secretary Matsuno says closely watching FX moves
- US officials fear Russia oil cap risks failing after OPEC+ output cut
- TMSC has secured a one-year license to continue ordering US chipmaking equipment in China
- The eagerly awaited US CPI data for September is due Thursday - previews
- More on US ban chips to China - Applied Materials cuts quarterly revenue, profit estimates
- PBOC sets USD/ CNY central rate at 7.1101 (vs. estimate at 7.1248)
- Bloomberg report that "Yellen Worries Over Loss of ‘Adequate Liquidity’ in Treasuries"
- IMF continues to support Bank of Japan loose monetary policy - required for inflation
- Chinese media report local governments to buy houses (part of economic stimulus measures)
- Australia October inflation expectations survey: 5.4% (prior 5.4)
- Japan September PPI +0.7% m/m (expected +0.3%)
- Survey of Japanese firms: 75% say they can't compensate for USD/JPY above 145
- WSJ Fed insider - Fed officials expressed concern ... over persistently high inflation
- Fed's Bowman says inflation expectations appear to be well anchored
- US chip-equipment suppliers pulling staff out from China’s leading memory-chip maker
- Fed's Bowman: Sizable rate hikes should remain on table if inflation not seen moving down
- Goldman Sachs have an above consensus forecast for September US CPI (data due on Thursday)
- Blackrock CEO says we'll find way to substitute Russian gas but it will take time
- New Zealand data - September Food Price Index +0.4% m/m (prior 1.1%)
- ECB close to a deal to change terms of the TLTRO, decision could occur on October 27
- Hong Kong's central bank intervenes in FX
- TD forecasts +75bp Fed rate hike in November, +50 in December. Terminal 5% by March 2023
- Chile's central bank 50bp rate hike, to 11.25%. Will maintain there as long as needed.
- US Treas Sec Yellen says Russia could profitably sell oil at prices circa $60 / barrel
- Bank of America CEO says US consumer spending is up 10% in October
- US Treasury Secretary Yellen says the US values the US dollar's reserve currency status
- Oil - private survey of inventory shows a large build, greater than expected
- US Treasury's Yellen would like to work with Congress on further digital asset regulation
- ICYMI - Chip gear-maker ASML tells US employees to stop working with customers in China
- Small declines for the major US indices. S&P and NASDAQ extend losing streak to 6 days
- Forexlive Americas FX news wrap: PPI high, Fed minutes constructive
- US Treasury Secretary Yellen says attentive to the global repercussions of US policy
Asian markets had the Federal Open Market Committee (FOMC) minutes to digest during the session and then the September US inflation data to look forward to. Major FX traded in limited ranges for the session.
There wasn’t much fresh news to prompt activity. US Treasury Secretary Yellen spoke, her comments were wide-ranging but of little impact on the session.
On the data front Japanese wholesale level inflation (the PPI for September) surprised to the topside. Higher commodity prices and the weak yen impacting (import prices in yen rose 48% y/y, and 21% y/y in USD terms). The flow-through from high PPI to CPI has been limited in Japan but the data today looks like it’ll hold Japan’s CPI at recent highs. The Bank of Japan is sticking to its view that the CPI levels are not sustainable, the Bank wants to see wage gains in order to alter their view.
USD/JPY consolidated its gains, trading circa 146.70/90 for the session.
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Do you have your CPI trading playbook ready for tomorrow's big release?
