- CBA added on another +50bp to its terminal Reserve Bank of Australia cash rate
- Japan's PM Kishida: In the process of selecting the nominee for BoJ Governor
- AUD traders heads up - RBA Statement (SoMP) due on Friday, then Lowe speaks next week
- US President Biden speaking - State of the Union (SOTU) address
- European Central Bank speaker today is Dutch central bank head Knot
- More from BOC Gov Macklem - need time to assess rate hike impact on households and firms
- PBOC sets USD/ CNY mid-point today at 6.7752 (vs. estimate at 6.7758)
- AMP forecasts one more RBA rate hike, next move will be rate cuts late 2023 / early 2024
- UK GDP forecast cut, inflation forecast raised
- HSBC says BOJ to widen Yield Curve Control (YCC) range in H1, USD/JPY lower in 2023
- Japan to hold "Government-Labor-Management" wage talks in March
- Starved of chips, China’s bid to topple US as No 1 economy faces ‘unprecedented’ pressure
- Morgan Stanley adding in further Fed rate hikes to its forecast after Powell on Tuesday
- World Gold Council correction: Central bank gold buying in 2022 was the highest on record
- TD RBA forecast: March +25bp, April pause, May +25bp (May hike added), to terminal 3.85%
- China said No to US request for phone call between Pentagon Chief, China Defense Minister
- Oil - private survey of inventory shows a 2m headline draw vs. the build that was expected
- Forexlive Americas FX news wrap: Powell sends markets on a ride
- US stocks close higher in volatile trading day. Chipotle earnings disappoint after close
- Trade ideas thread - Wednesday, 8 February 2023
Major FX traded in small ranges only for the session, except for yen crosses. USD/JPY dropped initially to circa 130.75 before rallying back above 131.25. As I update its back under 131.20. USD/JPY movements dragged around other yen crosses. There were a few minor items out of Japan, it doesn’t take much to induce volatility in the yen at present.
One item out of Japan I will highlight was the report by NHK (Japan broadcast media) that there will be "Government-Labor-Management" wage talks in March aimed at boosting pay. The Bank of Japan has often stated that wage increases are necessary to convert the current cost-push inflation into demand-pull inflation. If accomplished, it claims, this would result in more stable and long-lasting inflation at or near its target level.
US President Biden delivered his State of the Union (SOTU) address, which didn’t move markets much at all.
Asian equity markets:
Japan’s Nikkei 225 -0.4% (Nintendo and Softbank posted disappointing results)
China’s Shanghai Composite -0.05%
Hong Kong’s Hang Seng +0.35%
South Korea’s KOSPI +1.4%
Australia’s S&P/ASX 200 +0.4%
(This chart is from our charting app, which is free and can be found at this link)
