- No Fed speakers on the docket for US holiday Monday - but some big guns later in the week
- Japan Senior govt member on BOJ policy: Now not the time for making a major policy change
- USD/JPY making a fresh low for the day under 127.50. BOJ meeting this week - YCC changes?
- Japan's sharp wholesale price rise in December - recap (& pressure on the BOJ)
- Bank of England Governor Bailey will testify in Parliament today, Monday 16 January 2023
- China property sector woes persist - new home prices fall again
- PBOC MLF fund injection, rate unchanged
- PBOC sets USD/ CNY mid-point today at 6.7135 (vs. estimate at 6.7090)
- Bank of Japan scheduled Japanese Government Bond purchase operation
- Australia private survey monthly inflation 0.2% m/m (prior +1.0%) & 5.9% y/y (prior 5.9%)
- Japan December PPI +0.5% m/m (expected +0.3%) and +10.2% y/y (expected +9.5%)
- Reminder - it's a US holiday today, Monday, 16 January 2023 - stock, bond trading closed
- Bank of Japan preview - "may be on the verge of its biggest policy change in decades"
- TD say still plenty of room for yen gains, see as low as 120 by the end of March
- Trade ideas thread - Monday, 16 January 2023
- Are you a forex trader? Take this (Intermediate) forex trading quiz.
- Ahead of its monetary policy meeting beginning on Tuesday the BOJ to buy JGBs today
- Monday morning open levels - indicative forex prices - 16 January 2023
- Week Ahead: Highlights include US retail sales, China data, ECB minutes, UK data
- Investing, Yes. But invest in what?
- Bitcoin makes a break for it before stalling at the November high
- Forexlive Americas FX news wrap: US major indices post the 2nd consecutive positive week
The US dollar weakened again here today. EUR, GBP, yen … well, right across the majors board, the US dollar fell away. While there was not really much of a fresh catalyst to point a finger at, positive sentiment on China reopening, the EU and US perhaps avoiding recessions, a slowing in major central bank rate hikes, natural gas prices down and other good news I may have missed persisted.
USD/JPY also has the Bank of Japan factor. The Bank’s first policy meeting for the year begins Tuesday Japan time (the statement will be issued at the conclusion of the meeting on Wednesday) and speculation is rife of further change to come after the December meeting allowed a higher yield ceiling for 10 year JGBs (from +25bp to +50bp ICYMI).
Data from Japan today was a surging PPI (see bullets above).
USD/JPY dropped under 127.50 today, to its lowest since May of 2022.
The People’s Bank of China announced a medium-term lending facility (MLF) today:
- 779bn yuan amount injected vs. 700 billion yuan maturing today
- for one-year
- at a rate of 2.75%, unchanged from the previous MLF
The PBOC set one- and five-year loan prime rates (LPRs) this Friday (the 20th). The unchanged MLF rate is suggestive of no change to current LPR rates will be the result.
Current LPRs are:
- 3.65% for the one year
- 4.30% for the five year
Coming up later today we have testimony from Bank of England Governor Bailey and senior officials (see bullets above).
And a US Federal holiday for Martin Luther King Day.
- US cash equity exchanges are closed
- The US bond market is also closed
- CME Globex (futures trade): Equity, Interest Rates, FX, Energy Products all halt at 1800GMT/1300 US ET, and reopen at 2300GMT/1800 US ET.
Asian equity markets:
Japan’s Nikkei 225 -1.3%
China’s Shanghai Composite +1.4%
Hong Kong’s Hang Seng +0.7%
South Korea’s KOSPI +0.9%
Australia’s S&P/ASX 200 +0.8%
Bitcoin climbed above USD21K.
