- Goldman Sachs on China - expects slow growth in H1 then a more pronounced rebound in H2
- ECB officials speaking Tuesday, 22 November 2022 - Holzmann, Rehn
- A tsunami warning has been issued after a magnitude 7.3 earthquake in the Pacific Oceean
- Reminder - Reserve Bank of Australia Governor Lowe is speaking at 0830 GMT
- China COVID cases mounting - Guangzhou reports over 8,200 new local Covid-19 cases
- PBOC sets USD/ CNY mid-point today at 7.1667 (vs. estimate at 7.1529)
- China to issue another 200bn yuan in loans to prop up property delivery
- The Bank of Korea is expected to hike its base rate by 25bps at its November 24 meeting
- PBOC is expected to set the USD/CNY reference rate at 7.1529 – Reuters estimate
- WSJ: Crypto firm Genesis has approached Binance for an investment, bid for loan book
- Reminder: It will be more or less a three-day trading week (US Thanksgiving holiday)
- AUD traders heads up - Speech by Philip Lowe, Governor of the RBA, coming up later today
- Reserve Bank of New Zealand meet Wednesday - preview
- ANZ-Roy Morgan Australian consumer sentiment index +1.0% on the week to 81.6
- Spain says it'll approve mortgage relief measures for more than a million households
- ICYMI - ECB's Centeno says the next ECB rate hike could be smaller than 75 basis points
- Forexlive Americas FX news wrap: OPEC production rumor sends crude below year end close
- Crypto firm Genesis warns of bankruptcy if it does not get new funding
- New Zealand October trade data, exports and imports higher than in September
- Goldman Sachs targets EUR/USD at 0.94 in 3 months
- Trade ideas thread - Tuesday, 22 November 2022
Ranges across major FX were subdued. The summary of the session is that the US dollar lost a little ground. It had gained on Monday in response to the news out of China of escalating COVID cases and restrictions. Cases in China continue to mount but as I update there are no further escalations of lockdowns of particular note. This may change.
Data today included the New Zealand trade numbers for October. The trade deficit ballooned to its highest ever following a surge in imports of consumer goods and cars. NZD/USD gained with the broad softness in the USD already noted above.
From China we had the country’s overnight repo rate falling to its lowest since January of 2021, circa 0.86%. Also, China will further prop up the property sector with another 200bn yuan in loans earmarked to help complete some projects.
In regional equities:
- Japan’s Nikkei 225 +0.74%, Topix +1.19%
- Australia's S&P/ASX 200 +0.61%
- Hong Kong’s Hang Seng -1.33%
- Shanghai Composite -0.2%, Shenzhen Component -0.84%
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ADDED - this came out after the wrap published, adding it in because it relevant to Chinese equities, they jumped on it:
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In crypto, Genesis has been in the news and was again today, with warning of bankruptcy unless it can raise funds. The firm says bankruptcy is not imminent. Stay tuned. BTC/USD dropped as low as around US$15,600 (just under) and is up a couple of hundred bucks since.
The agenda ahead includes the OECD publishing its latest Economic Outlook, at 1000 GMT.
BTC update:
