Forex News
Russia: CPI dropped to 9%y/y in July – below consensus
In July, CPI significantly slowed to 9%y/y. The slowdown was expected, but its size delivered some surprise: bloomberg’s consensus expected 0.1%m/m, or 9.2%y/y – the Economy Ministry anticipated the range 0.2-0.3%m/m.
Behavioral Finance: Daily Forex Outlook: ECB was unable to soothe the market
EUR/USD (1.4095) When asked in the post-meeting press conference why the ECB wasn’t actively buying eurozone bonds, President Trichet responded, “You will see what we do”, adding that he wouldn’t be surprised to see something in the market before the end of the teleconference.
HSBC MacroBullets – 05/08/11
TOP Japanese FinMin Noda today repeated that he was closely watching yen moves, signalling Tokyo’s readiness to continue with its yen-selling intervention that media said reached a record 4 trillion yen ($50.6 billion). However Noda also said he wanted to spend more time determining the effect of Tokyo’s action, a comment which briefly pushed up […]
TURKEY WATCHERS. Interim MPC: Shifting priority
CBRT did not surprise in surprising markets with sweeping changes to monetary and FX policies in today’s interim meeting. The policy priority shifts to supporting domestic growth in light of deteriorating global environment.
ECB – bond buying, money market liquidity
ECB – Hint at bond buying and announcement of more money market liquidity (Astrid Schilo, Senior European Economist) – Bond buying programme is ongoing – Increased money market liquidity via new 6 mth tender, roll-over of 3 mth full allotment – ECB rates on hold at 1.5%, unchanged key expressions, more emphasis on growth uncertainty
FX DAILY STRATEGIST: US – 04 August 2011
• Key for EUR will be whether the ECB considers restarting SMP • Japan intervenes to weaken JPY, BOJ eases policy • A sustained USDJPY rally is unlikely given current market nervousness
INTERVENTION THOUGHTS – D.BLOOM + TEAM
Bloomie’s thoughts on the INTERVENTION policies we’ve seen the last few days. Concludes – Unilateral action will not alter the long term trend {http://bit.ly/pZWisX} We have just seen the SNB cut rates to zero and the Japanese authorities engage in unilateral FX intervention. These actions are aimed at halting or reversing the currency appreciation both […]
UniCredit EEMEA Daily
News HU: Negative – Alliance of Hungarian Local Government Head announces a proposed delay of principal repayments on CHF loans issued by local governments to domestic instititions, largely banks (p2) RO: Neutral – NBR leaves policy rate unchanged at 6.25% / Negative – June retail sales drop 1.2% mom (p2) TK: Mixed – July CPI […]
Repeated action will be needed
The MoF surprised the market by stepping in to sell JPY in the Tokyo morning session today, pushing up USD/JPY from around 77.30 to 79 yen so far. Finance Minister Noda confirmed the government’s action.
HUF WATCHERS
Hungary: Local governments seek extension on principal repayment of CHF debt Hungarian local authorities asked the Prime Minister to intermediate a deal with the banks for a one-year delay in principal repayments of Swiss Franc debt worth HUF600bn (cUSD3.2bn).
Global Macro Daily (London Open) – 04 August 2011
– The ECB is meeting on Thursday, one month after having raised the refi rate by 25bp (to 1.50%). We do not expect much to come out of the press conference, and neither does the market. We look at the options the ECB has in terms of bond buying (see Focus on next page).
Daily Forex Outlook: Why isn’t the euro already beneath $1.40?
EUR/USD (1.4205) US private spending went unexpectedly negative in June, suggesting that consumers are already bolstering themselves against the effects of a slowing economy. Although many stock market participants had been expecting a relief rally shortly after the US debt-ceiling resolution, they instead got a mighty sell-off.