The Dollar Index (DXY) extended its slide, easing 0.20% to 101.58 from 101.77 after a key US inflation rate rose to its smallest increase since November 2020. The US Personal Consumption Price Index (PCE) rose just 0.2% in April down from the previous month’s 0.9% and lower than economist’s forecasts at 0.8%. The PCE report
Month: May 2022
It’s a quiet trading day but we’re carrying over the themes from last week with the dollar keeping lower for the most part while equities are looking to extend the bounce from last week. I categorised last week’s move as that of markets looking for some breathing room after the moves from April to early
Yen regaining stability after rapid weakening Weakness driven by abnormal situation where oil prices topped $130 per barrel Pledges to maintain powerful monetary easing to aid the economic recovery Inflation surge stems mostly from rise in commodity prices Yen weakness only contributed a little to recent jump in inflation A bit of denial there by
There isn’t much on the board to take note of for the day and with it being a US holiday, there isn’t much interest for the most part as such. There will be a mammoth set of expiries for EUR/USD at 1.0590-00 tomorrow but that is quite a distance from the current spot level, so
The pair is trading back to its lowest since 23 May on the day, hovering around 6.64 levels currently. The strengthening in the yuan comes as China is scaling back on lockdown measures in Shanghai and Beijing, with the former also introducing measures to bolster the local economy: That is contributing to a slightly more
Analysts at Kiwibank in New Zealand on their Reserve Bank of New Zealand outlook. This in (very) brief from a longer note: The RBNZ lifted the cash rate to 2%, and signalled more rapid-fire 50bp hikes to come. The revised OCR track is steeper and the terminal rate was shunted higher to 3.95%. The RBNZ’s
Reopening is inching slowly forwards in China’s cities. Some encouraging news. For example: Beijing libraries, museums, theatres and gyms were allowed to reopen on Sunday, (limits on numbers of people) in districts that have seen no community COVID cases for seven consecutive days. Fangshan and Shunyi districts will end work-from-home rules, public transport will largely
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Some background reading for the weekend in this report. Rates may we have peaked for now. The idea is not fresh, as economic data has come off the boil in the past few weeks yields have fallen, down sharply from the cycle highs reached in the month of May (info via Greg): 2 year 2.484%,
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