- The Fed speakers on Friday are Bullard, Bostick, Mester
- European Central Bank President Lagarde speaks on Friday. Panetta (on crypto) and De Cos too
- USD/CNH is above 7.21, and the US dollar is almost higher across the majors
- The ECB’s September rate hike seems almost locked in
- Two reasons why the Bank of Japan “adjusted” the Yield Curve Control (YCC) at its July meeting
- Why High Central Bank Interest Rates Are Bullish Oil
- Mainland China is on holiday Friday, June 23, 2023 – Hong Kong is open
- Japan Gibbon June Preliminary Manufacturing PMI 49.8 (previously 50.6)
- Inflation data out of Japan today will reignite speculation of a policy change by the Bank of Japan
- After 100+ Pips Up in USDJPY, Be Alert for Intervention Comments
- Japanese CPI for May, the headline, 3.2% yoy vs. 3.5% previously
- UK consumer sentiment remains very negative, but it’s the best in 17 months
- Preliminary Australia PMI: Manufacturing 48.6 (previously 48.4) and Services 50.7 (previously 52.1)
- Yellen says the chance of a recession has diminished but remains a risk
- The Japanese CPI data is not expected to provide much clarity on the potential for the Bank of Japan’s move in July
- Goldman Sachs says the scope to intervene in the Japanese yen may be limited
- Fed’s Barkin says bank remains “a good way” from 2% inflation target
- Deutsche Bank expects BoE interest rate to peak at 5.75% – more ‘strong’ hikes on the table
- Forexlive Americas FX News Summary June 22nd: US Dollar Moves Higher on Yields. Powell sees more upside
- JPMorgan expects another 75 basis points to raise interest rates from the Bank of England
- Fed’s Barkin says inflation in the US remains very high
- Trade Ideas Topic – Friday 23rd June 2023
- Standard & Poor’s and Nasdaq snap a three-day losing streak
There was a whiff of risk during the session in Asia today. Flows were in US dollars and out of other major foreign currencies. The USD/JPY pair was a bit of an exception, and didn’t do much at all. Adding to the sour note, there were dips in US stock index futures in Globex trading, with ES and NQ down nearly half a percent (as you noted) and regaining much of the gains they made on Thursday during normal trading hours.
There were no clear new catalysts for these moves, with some pinning the moves on continued growing fears that more central bank hikes (two-year yields in the US were close to the highs last seen in March) are yet to come. The Bank of England raised the bank’s interest rate by 0.5% on Thursday, larger than the 25 basis point increase that was unanimously expected, but given recent inflation and jobs data, it wasn’t much of a shock.
On the data front, we had inflation in May for Japan with core growth (adjusted excluding food and energy) hitting a 40-year high and other measures also still being high.
Mainland China was off again today (Hong Kong markets are back after Thursday’s holiday). Offshore Yuan Weakens, With USD/CNH Rising Above 7.22 In One Stage.
Asian stock markets:
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Japanese Nikkei 225 – 1.6%
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Shanghai Composite in China – again today
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Hang Seng in Hong Kong -1.7%
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Cosby in South Korea -0.8%
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Australia S&P/ASX 200 -1%
US dollar / Chinese yuan:
This article was written by Eamon Sheridan on www.forexlive.com.
