- More on the Saudi, Iraq pledge on additional measures to ensure oil market stability
- Estimate of the likely PBoC move is an RRR cut of 25 basis points for all banks
- ECB's Jochnick and de Guindos are on the agenda for Friday, 25 November 2022
- Saudi, Iraq promise additional measures to ensure oil market stability if necessary
- PBOC sets USD/ CNY reference rate for today at 7.1339
- Chinese state financial media says an RRR cut for all banks is likely
- China's new COVID case count for the day has hit a fresh record high, nearly 32K
- PBOC is expected to set the USD/CNY reference rate at 7.1375 – Reuters estimate
- Uk data - car production +7.4% y/y in October
- Japan data - October Corporate Services Price Index (CSPI) 1.8% y/y (prior 2.1%)
- Tokyo November CPI data: Headline 3.8% y/y (October was 3.5%)
- Financial Times - UK Cabinet will halt installation of Chinese made surveillance equipment
- BoA see a choppy Q1 2023 "before rates & USD can establish a peak (and EM a trough)"
- CME Globex Thanksgiving holiday hours (ICYMI)
- NZ data - Q3 retail sales +0.4% q/q (prior -2.3%)
- Trade ideas thread - Friday, 25 November 2022
- NZ data - ANZ Roy Morgan Consumer Confidence for November: 80.7 (previous 85.4)
- Forexlive Americas FX news wrap: Happy Thankgiving. The JPY is the strongest. USD lower.
Tokyo’s inflation sped to its fastest pace since 1982. The Tokyo data is used as indicative of national level inflation, which appears likely to also rise in November. Japanese Government Bonds came under pressure on the data, the yield on 10-year JGBs rose to near the top of the Bank of Japan target band. The response of the yen, however, was to weaken. Not by much, the range has been from lows around 138.45 to a high just over 139.00. As I update USD/JPY has dropped back to more or less the middle of its range. Despite rising inflation the Bank of Japan have been adamant in insisting its transitory, driven by cost-push factors that will dissipate.
Elsewhere across major FX rates ranges have been subdued, interest has been sapped by the US Thanksgiving holiday Thursday that’ll, unofficially, stretch into Friday and thus a four-day weekend.
Speculation of an RRR cut from the People’s Bank of China intensified. New COVID cases in the country rose to a fresh record high.