- Westpac sharply boost their terminal RBA cash rate forecast to 3.35% from 2.6%
- China to extend anti-dumping duties on some steel products imported from Japan, EU
- More from China's SAFE - capital has been flowing out from emerging markets
- Chinese commercial banks bought USD 5.9bn of FX in June vs. 1.5bn in May
- Oil: Russian President Putin, Saudi Prince Mohammed bin Salman spoke by phone on Thursday
- PBOC sets USD/ CNY reference rate for today at 6.7522 (vs. estimate at 6.7485)
- Japan finance minister Suzuki says need to watch risks of rising inflation on the economy
- Japan Jibun Markit preliminary manufacturing PMI July 52.2 (prior 52.7)
- ICYMI - Saudi Arabia says its oil output capacity tops out at 13 mn barrels / day
- UK consumer sentiment remains at its record low
- USD/JPY just above 137.00 after June inflation data show core-core highest since Feb 2016
- Japan headline CPI 2.4% y/y (expected 2.4%)
- Heads up for Japanese inflation data due at 2330 GMT
- Australia July flash Manufacturing PMI 55.7 (prior 56.2) & Services 50.4 (prior 52.6)
- ANZ on what gave gold a boost Thursday
- RBC: Russia is ... Weaponizing gas flows ... to keep Europe in a state of perpetual panic
- ECB to hike +50bp again in September : EUR/USD, fade the rally, its heading below parity
- Forexlive Americas FX news wrap: ECB launches with a 50 basis point hike
- South Korean PPI +0.5% m/m in June (from +0.7% in May)
- Trade ideas thread - Friday, 22 July 2022
- US stocks turn in another impressive performance as the 'hated' rally gets legs
USD/JPY began the session in Asia by extending its Thursday loss down close to 137.00. It has since bounced above 137.50. We had Japanese inflation data for June published today, with core and core-core both a little higher. The Bank of Japan, of course, is viewing current levels as transitory and have given no indication they’ll be backing away from their extraordinary loose monetary policy any time soon. USD/JPY bounced off its session lows after the data. I’d be reluctant to point to the CPI numbers as a smoking gun for the move, despite the time correlation but I could be wrong.
EUR/USD dropped back a little from late US highs above 1.0220 to back under the figure. Not a big move. Cable, too, is off a little, as are AUD/USD, NZD/USD. USD/CAD and USD/CHF are a few ticks higher, fitting with the pattern seen elsewhere.
We had flash PMIs from Australia and Japan today, with plenty more to come from Europe and the US ahead. Those we had here were a little softer on the month but still in expansion.
