Sun, Sep 01, 2024 @ 00:15 GMT
Facebook Mail RSS Twitter
Live Comments Page 688

Live Comments

Random

UK Lidington said Brexit deal possible in 24-48 hours, but Hunt doesn’t know when

    By
    ActionForex.com
    -

    Comments from UK officials regarding Brexit negotiation are rather confusing today. Cabinet Office Minister David Lidington said that “we’re not quite there yet”. But he emphasized “we are almost within touching distance now. ” And, a deal in the next 24 or 48 hours is “possible but not at all definite”. He was “cautiously optimistic”.

    On the other hand, Foreign Minister Jeremy Hunt said “we don’t have a solution yet”. He added “both sides draw encouragement form the fact that so much has been agreed”. And the figure 95% used was “probably accurate”. The 5% is a “difficult 5 percent though”. Hence, “we don’t know when it’s going to be possible to conclude those negotiations.”

    Gold resumes rebound, heading back to 1700, but no break expected

      By
      ActionForex.com
      -

      Gold is lifted by return of risk appetite today, as DOW is current up over 1000 pts. The break of 1644.67 resistance suggests resumption of whole rebound from 1451.16. Further rise should now be seen to 61.8% projection of 1451.16 to 1644.67 from 1567.78 at 1687.36.

      However, recent price actions from 1703.28 high are seen as a medium term consolidation pattern, that corrects whole up trend from 1160.17. Hence, we won’t expect a firm break of 1703.28 for now. Instead, another fall should be seen to extend the consolidation. Break of 1567.78 will turn near term outlook bearish for 1451.16.

      PBoC announces RRR cut to support the real economy

        By
        ActionForex.com
        -

        China’s central bank PBoC announced to lower reserve requirement ratio for all banks by 50bps, starting September 16. Additionally, the RRR will be lowered by further 100bps for commercial banks operating only in the provincial administrative region, to support small and micro enterprises. This additional RRR cut will be implemented by two batches on October 15 and November 15.

        Together, the RRR cuts are expected to release around CNY 900B. They will increase resources of financial institutions for supporting the real economy. And, targeted RRR cut is an important measure to improve the “three-grade and two-optimal” policy framework for small and medium-sized banks to implement a low deposit reserve ratio.

        PBoC also said that the RRR cut will hedge against tax period in mid-September. Total liquidity of the banking system will remain basically stable. Thus, stable monetary policy orientation has not changed.

        Eurozone PMI composite dropped to 51.6, recovery by undermined rising virus cases

          By
          ActionForex.com
          -

          Eurozone PMI Manufacturing dropped slightly to 51.7 in August, down from 51.8, below expectation of 53.0. PMI services tumbled to 50.1, down from 54.7, missed expectation of 54.0. PMI Composite dropped to 51.6, down from 54.9.

          Andrew Harker, Economics Director at IHS Markit said: “The eurozone’s rebound lost momentum in August, highlighting the inherent demand weakness caused by the COVID-19 pandemic. The recovery was undermined by signs of rising virus cases in various parts of the euro area, with renewed restrictions impacting the service sector in particular…The eurozone stands at a crossroads, with growth either set to pick back up in coming months or continue to falter following the initial post-lockdown rebound. The path taken will likely depend in large part on how successfully COVID-19 can be suppressed and whether companies and their customers alike can gain the confidence necessary to support growth.”

          Full release here.

          Japan PMI finalized at 53.3 in May, in-line with 2.90% increase in industrial production in 2022

            By
            ActionForex.com
            -

            Japan PMI manufacturing was finalized at 53.3 in May, down from April’2 53.5. S&P Global noted softer expansions in production and incoming new business. Supply chain disruption encouraged firms to bolster safety stocks. Input prices rose at fourth-fastest pace in survey history.

            Usamah Bhatti, Economist at S&P Global Market Intelligence, said:

            “Both output and new orders rose at softer rates, with the latter rising at the weakest pace for eight months amid sustained supply chain disruption and raw material price hikes…

            “Disruptions were exacerbated by renewed lockdown restrictions across China, and contributed to a further sharp lengthening of suppliers’ delivery times. The deterioration in vendor performance was the joint-quickest since last October and robust overall….

            “Material shortages and logistical issues were also partly behind a sustained surge in costs. Average input prices rose at a substantial rate that was the fourth-highest on record….

            “Confidence regarding the year-ahead outlook strengthened however, underpinned by hopes that an end to the pandemic and Russia-Ukraine conflict would induce a broad recovery in demand and supply chains. This is in line with an estimated 2.9% increase in industrial production in 2022.”

            Full release here.

            Chinese Yuan recovers as PBoC pledges to prevent over-adjustment

              By
              ActionForex.com
              -

              Chinese Yuan made a notable recovery today after PBoC made its intentions clear, vowing to staunchly prevent an “over-adjustment” in the Yuan’s exchange rate and avert systemic financial pitfalls. Amplifying this verbal intervention, several of China’s major state-owned banks have been observed actively selling US Dollars in favor of Yuan in both onshore and offshore markets this week.

              This proactive stance by PBoC and state-owned banks arises at a time when Yuan has been on a downward trajectory, dangerously inching closer to its lowest levels since 2007.

              Market observers are now grappling with a pivotal question: Is China’s move aimed at establishing a firm bottom for Yuan or merely an effort to slow down its rapid decline?

              Technically, a temporary top should be formed at 7.3491 in USD/CNH and some consolidation is now expected. As long as 55 4H EMA holds (now at 7.2685), further rally is still in favor. Break of 7.3491 will resume the rally from 6.6971 towards 7.3745 high, or possibly further to 61.8% projection of 6.8100 to 7.2853 from 7.1154 at 7.4889.

              ECB’s Lane: Disinflation process necessarily bumpy at current phase

                By
                ActionForex.com
                -

                ECB Chief Economist Philip Lane described disinflation process as “necessarily bumpy” at the current phase. In a speech, he pointed out that headline inflation is expected to “fluctuate around current levels in the near term,” influenced by base effects in energy sector and recent reversal of service inflation spikes caused by the early timing of Easter.

                Meanwhile, Lane noting that while wage pressures are “gradually moderating,” they remain above what would be considered normal or steady-state levels. He emphasized that achieving ECB’s inflation target involves not just controlling wage growth but also managing profit margins across the economy.

                Looking ahead to June Governing Council meeting, Lane indicated that ECB’s decisions would be informed by “updated staff projections” and comprehensive data on wage and profit dynamics from the early months of the year. He suggested that if these updated assessments and data provide stronger confidence that inflation is converging to ECB’s targets, it could be “appropriate to reduce the current level of monetary policy restriction.”

                Full speech of ECB Lane here.

                BoJ opinions: Current monetary easing should continue

                  By
                  ActionForex.com
                  -

                  In the Summary of Opinions at BoJ’s monetary policy meeting on April 27/28, new governor Kazuo Ueda’s debut, revealed the need to continue with current monetary easing despite improved view on inflation outlook.

                  One member said “attention is warranted for the time being on the possibility of continued high inflation” while another said “achievement of the price stability target of 2 percent is coming into sight”. Meanwhile, “price projections have been raised somewhat”.

                  Yet, it’s generally agreed that the central bank “should continue with the current monetary easing,” given that inflation is likely to decline ahead, in the background of heightened uncertainties in overseas economies.

                  Also it’s reiterated that to achieve the inflation target in “sustainable manner”, it needs to be “accompanied by wage increases”. And it’s “necessary” to continue to “firmly support the momentum for wage hikes through monetary easing “.

                  There was also cautions that “the risk of missing a chance to achieve the 2 percent target due to a hasty revision to monetary easing is much more significant than the risk of the inflation rate continuing to exceed 2 percent.”

                  One member noted that there is no need to revise the conduct of yield curve control as “distortions on the yield curve are currently dissipating”.

                  Full BoJ Summary of Opinions here.

                  Eurozone CPI finalized at 2.9% yoy in Oct, core at 4.2% yoy

                    By
                    ActionForex.com
                    -

                    Eurozone CPI was finalized at 2.9% yoy in October, down from September’s 4.3% yoy. CPI core (excluding energy, food, alcohol & tobacco) was finalized at 4.2% yoy, down from previous reading of 4.5% yoy. The highest contribution came from services (+1.97%), followed by food, alcohol & tobacco (+1.48%), non-energy industrial goods (+0.90%) and energy (-1.45%).

                    EU CPI was finalized at 3.6% yoy, down from prior month’s 4.9% yoy. The lowest annual rates were registered in Belgium (-1.7%), the Netherlands (-1.0%) and Denmark (-0.4%). The highest annual rates were recorded in Hungary (9.6%), Czechia (9.5%) and Romania (8.3%). Compared with September, annual inflation fell in twenty-two Member States and rose in five.

                    Full Eurozone CPI final release here.

                    1...686687688Page 688 of 688

                    ActionForex.com was set up back in 2004 with the aim to provide insightful analysis to forex traders, serving the trading community for over a decade. Empowering the individual traders was, is, and will always be our motto going forward.

                    Contact us: contact@actionforex.com

                    © ActionForex.com © 2024 All rights reserved.