Major FX rates moved in small ranges here during the timezone with many traders awaiting the inflation data due from the US Wednesday morning US time (see bullets above for preview). US President Biden will speak later in the day (2.15pm NY time, which is 1815 GMT) on inflation matters (yes, again … he spoke Tuesday on inflation also (see bullets above)).

On the data agenda here today we had Chinese inflation figures for April. Both PPI and CPI came in above expectations. PPI slipped a little lower from March while CPI was much higher than in March. CPI is still comfortably in a range where the People’s Bank of China could provide further monetary policy stimulus though. There are some expectations of a cut to the rate charged on the bank’s Medium-term Lending Facility (MLF) next week. There usually are such expectations, lets see how it goes this time. The week after next we’ll get the monthly Loan Prime Rate (LPR) settings (on the 20th).

On the fresh news front the flow was fairly light. New Zealand announced its fully reopening its border on July 31, two months earlier than planned. In the US Congress the House of Representatives passed the latest Ukraine aid package, circa $40bn. Its expected the bill be voted on in the Senate not before next week.

Cable is a small mover on the session, up 25 or so points from its early lows. USD/CAD is down a similar number of points. Oil recovered some ground, WTI climbed back above $100.

oil wrap 11 May 2022