- China Stats bureau head says there is space for monetary policy to support growth
- The BOJ is expected to raise its growth and inflation forecasts tomorrow (Tuesday 18 January )
- Reminder - its a US holiday Monday 17 January 2022 - stocks, bond markets closed
- China President Xi Jinping calls for improved regulation & governance of digital economy
- Japan is considering a quasi state of emergency in Tokyo and surrounding areas
- China 'activity data' for December 2021: Industrial output beats, retail sales miss
- China Q4 2021 GDP 1.6% q/q and 4.0% y/y
- China recap - PBOC rate cuts
- PBOC 700bn yuan of 1-Year MLF - cuts rate by 10 basis points
- PBOC sets USD/ CNY reference rate for today at 6.3599 (vs. estimate at 6.3604)
- Peloton to charge 'hundreds of dollars' more - citing inflation, supply chain pressure
- China's capital Beijing has tightened rules for entering the city after Omicron case
- Singapore December NODX +18.4% y/y (expected +13.8%)
- More on China facing growing supply chain risk
- Société Générale on EUR/GBP
- North Korea has launched a suspected ballistic missile towards the Sea of Japan
- UK data – Rightmove house prices for January
- Japan has raised its assessment on machinery orders after solid November data
- Vitol says oil prices could head even higher - tight supply
- Japan media report that tighter coronavirus measures are being considered for Tokyo
- PBOC deputy governor warns China is facing growing supply chain risk
- Goldman Sachs slash their US economic growth forecast for 2022 to 3.4%
- Why the RBA forecast of 5.5% economic growth in Australia for 2022 is wrong
- Some analysts are saying Fed rate hikes will be a policy error
- Trade ideas thread - Monday 17 January 2022
- Walmart plans to create its own cryptocurrency and collection of NFTs
- US President Biden and Japan Prime Minister Kishida will meet this week
- ECB board member Isabel Schnabel warns premature rate hike could "choke" economic recovery
- Monday morning open levels - indicative forex prices - 17 January 2022
- Hedge fund manager Ackman - Fed needs to restore its credibility, 50bp rate hike in March
- Chinese home prices continue to slow in sign of Evergrande hit
- Omicron hits Beijing three weeks ahead of the Olympics
- S&P and Nasdaq index close at session highs.Major indices down for the week.
The People's Bank of China announced a 10 basis point cut to the one-year medium term lending facility (MLF) rate from 2.95% to 2.85% and 7 day reverse repo open market operation rate from 2.20% to 2.10%. This was the first MLF cut since April of 2020. On Thursday (20 January) this week the Bank will be setting its one- and five-year Loan Prime Rates (LPR). The MLF cut has raised expectations of a cut for an LPR.
Following on from the rate cuts China published Q4 GDP (a beat but down on Q3 and the slowest for 18 months) and December economic activity data (industrial output beat but a retail sales miss … see bullets above).
Coronavirus news from China saw a case detected in Beijing and a subsequent tightening in entry restrictions to the city.
North Korea fired two ballistic missiles from Sunan Airfield in Pyongyang.
Pacific island Tonga was rocked by a huge volcanic eruption over the weekend, a tsunami wave resulted. There have been deaths, injuries and damage. The extent is still unknown as communications with the nation have been cut due to damage. As I post there has been a further large eruption,
USD/JPY and USD/CHF rose on the session, USD/JPY the stronger. 114.50 held the rally. Elsewhere across major FX ranges have been small with barely any net change for the session. Its a US holiday today, Monday, which will thin out North American forex trade. Stock and bond markets are close (see bullets above for more).
Bitcoin tracked sideways over the weekend: