- Gazprom says NordStream1 will not be launched until Siemens repairs faulty equipment
- Japan finance minister Suzuki says monitoring FX moves with sense of urgency
- A heads up for Federal Reserve Chair Powell speaking this week (8 September)
- Japan urges oil producing countries to expand output
- Australian data: Net exports to contribute 1% to Q2 GDP (0.9% expected)
- Russia says its considering setting up its own insurer to ship oil
- PBOC sets USD/ CNY central rate at 6.9096 (vs. estimate at 6.9304)
- Ahead of the yuan rate setting from the PBoC, a reminder of the move to limit its downside
- Gold has sprung higher - approaching USD1717 and resistance?
- GBP has risen to highs above 1.1580 in early Asia - fiscal boost, higher rates ahead
- New UK PM Truss readying a 130bn GBP plan to freeze energy bills
- Japan data: July Household spending -1.4% m/m
- Australia weekly consumer confidence +1.3% w/w
- UK data - "Many Brits plan to continue cutting back on their discretionary spending"
- UK data - BRC August Like-for-like retail sales +0.5% y/y (prior 1.6%)
- Early Asia is kicking off with some offers for the USD
- ICYMI - OPEC's symbolic output cut (100k bbls/day)
- Moody's is worried about the fiscal chops of incoming PM Truss
- ICYMI - PBOC (verbal) intervention in CNY and a cut to FX RR
- Heads up reminder - US futures markets (Globex) reopen for trade at 2200 GMT
- Trade ideas thread - Tuesday, 6 September 2022
- Forexlive Americas FX news wrap: OPEC+ trims production
The US dollar fell across the majors board during morning trade here.
GBP/USD rose to nearly 1.1600 as US dollar weakness combined with news out of the UK of further stimulus to be put in place by new Prime Minister Truss. Truss is setting up a program to keep households' annual energy bills below £2,000, at a cost of around £130bn. This equates to circa 5% of GDP in subsidies for household energy bills. This will stoke further and faster Bank of England rate hikes.
There was little relevant idiosyncratic news for other majors. CAD, AUD, NZD, CHF all dropped against the USD. Gold surged above USD1725 at one stage but has since retraced some of its gain.
USD/JPY lost ground early towards 140.25. Yen-supportive comments from Japan’s finance minister Suzuki followed, met by the markets with yen selling driving USD/JPY back to early highs circa 140.55. Suzuki not getting much respect from the yen-trading crowd.
The People’s Bank of China set the reference rate for USD/CNY above 6.9 today. The Bank announced yuan-supportive policy on Monday afternoon China time but the setting today was the weakest for the CNY since August 25 2020.
USD/JPY round trip:
