- RBA dep gov Bullock says the policy rate level is not yet restrictive
- Wall Street Journal report "RBA Suffers Huge Accounting Losses From Bond-Buying Program"
- RBA dep gov Michele Bullock speaking - addressing bond review report
- ICYMI - US authorities name more Chinese firms as threats to national security
- Bank of Japan buying 10 to 25 year JGBs
- PBOC sets USD/ CNY mid-point today at 6.9536 (vs. estimate at 6.9539)
- PBOC CNY reference rate fixing coming up after ADB sliced GDP projections
- Australian data - Westpac Leading Index for August -0.05% m/m (prior -0.17%)
- ICYMI - Sweden's central bank 100bp rate hike overnight
- Asian Development Bank cuts economic growth forecasts, China 22 projection slashed to 3.5%
- Video: Signs of global economic weakness mount ahead of the FOMC decision
- USD - Federal Reserve "monetary policy will remain restrictive through 2023 and into 2024"
- A small chance the BOJ could "rock currency and bond markets" - YCC questions Thursday
- ICYMI - snap lockdown in the steel hub of Tangshan, China on Covid Zero policy
- Federal Open Market Committee (FOMC) statement due Wednesday, 21 September 2022 - preview
- RBA Review of the Bond Purchase Program - full text
- U.N. Secretary-General wants a wdinfall profit tax on energy firms
- Swiss National Bank monetary policy meeting preview
- UK PM Truss mini-budget - to cut housing stamp duty to spur economy
- JP Morgan forecast a FOMC 75bp interest rate rise this week, target rate of 4.25% by Feb23
- Forexlive Americas FX news:One more sleep until the the Fed day. Yields up. Dollar higher.
- Oil - private inventory survey shows headline build smaller than expected
- BoC Dep Gov Beaudry says its too early to say if global tightening will lead to recession
- Trade ideas thread - Wednesday, 21 September 2022
- US equity close: Not a pretty picture but off the lows
- Putin speech rescheduled 8 am in Moscow
Major FX was relatively subdued during the session here today, the obvious reason being traders await the outcome of the Federal Open Market Committee (FOMC) monetary policy meeting. There are links to previews in the points to posts above, and links to further previews in those posts. TL;DR is that a 75bp rate hike is widely expected, taking the target range of 3.0% to 3.25%. That would also put the Fed in restrictive policy. Also in focus will be the dot plot and central tendencies. Where does the Fed see the terminal rate to be and are lower rates seen in 2023 or later? More on the dot plot is here:
While the majors tracked sideways not so the yuan. It continued its slide. China’s economy is being pounded by ongoing rolling lockdowns due to its Zero Covid policy, a collapsed debt-ridden property market and, until recently, power shortages. The yuan is bearing the brunt. Offshore yuan fell again today to USD/CNY circa 7.05.
Ahead of the FOMC Russian President Putin is speaking, at 8am in Moscow.
After the FOMC, Thursday Asia time, is the Bank of Japan policy statement. The Bank was in buying JGBs aggressively today, trying to drive down higher yields. This is not a sign of a Bank about to withdraw from super-easy policy any time soon.
