- Goldman sachs says a recession would cast doubt on a strong USD
- China's state planner says the economy faces increasing downwards pressure
- TD Securities says there is "additional pain" to come for gold longs
- China begins conference on promoting development of the digital economy
- RBA minutes show the RBA considered a 40bp hike in May
- More from BOJ's Amamiya - important to continue powerful easing
- Japan finance minister Suzuki says again that rapid FX moves are undesirable
- PBOC sets USD/ CNY central rate at 6.7854 (vs. estimate at 6.7860)
- BOJ Deputy Governor Amamiya says does not expect energy & commodity prices to keep rising
- China economic growth forecasts continue to be cut
- In Shanghai not a single car was sold last month (Shanghai Automobile Sales Association)
- Singapore data - April NODX +6.4% y/y (expected +6.7) & -3.3% m/m (expected -1.3)
- Shanghai says no new coronavirus cases outside quarantine for 3rd day in a row
- Nomura will allow institutional investors to trade cryptocurrencies
- Australia data - ANZ Roy Morgan weekly consumer confidence 89.3 (prior 90.5)
- Reserve Bank of New Zealand to hike its cash rate by 50bps next week - preview
- ICYMI - McDonalds to sell all 850 restaurants in Russia
- Berkshire Hathaway 13F filing: Bought more Chevron, trimmed Verizon
- Australian election is on Saturday 17 May 2022 - latest polling shows incumbents to lose
- Crude just under $114 - technicals and fundamentals
- NZD traders - heads up for the GDT dairy auction coming up Tuesday 17 May 2022
- More on Goldman Sachs cutting its forecast for the S&P500
- Forexlive Americas FX news wrap: USD moves lower as yields back off
- More from Morgan Stanely - forecasting S&P towards 3,400
- Morgan Stanley are forecasting EUR/USD to 1.03, warn of an overshoot to parity
- Trade ideas thread - Tuesday 17 May 2022
- US major indices mixed with Dow higher, S&P and Nasdaq lower
News flow was light today. Eyes are on Shanghai. Today we had reports that the easing of restrictions for the city flagged to begin next week (Monday) are likely to go ahead as China's largest city recorded the third consecutive day of no Covid infections outside of quarantine.
On the central bank front we had comments from Bank of Japan Deputy Governor Amamiya. He didn’t surprise us, restating (yet again) that the BOJ will be maintaining its easy monetary policy.
While speaking about central banks we had the minutes of the Reserve Bank of Australia May 2022 meeting published today. The May meeting was the occasion of the first RBA cash rate hike in over 11 years. There was nothing at all in the minutes to suggest the path ahead is not for more rate hikes. The June meeting (the 7th) is expected to give us the next rate hike, likely of 40bps to take the cash rate target to 0.75%.
Major FX rates moved in minor ranges only, characterised by a touch of weakness for the US dollar almost across the board. USD/JPY did rise a little.
Regional equities mainly traded a little higher. China flagged a little more support for the tech sector, launching a conference to promote the development of the digital economy. Japan’s government is expected to pass an extra budget before June, more fiscal support for the country's economy.
As I said earlier, minor FX moves only. EUR/USD ticked a little higher and has now retraced much of it .... making a liar out of me it is!
