ForexLive Asia-Pacific FX news wrap: Rates lower in China

  • Taiwan earthquake – semiconductor manufacturing facilities appear unaffected
  • China’s state planner says it approved 9 investment projects in August, worth 80 billion yuan
  • ICYMI – Lower interest rates in China. The 14-day repo rate fell to 2.15% from 2.25%
  • Iranian president wants US guarantees and lifting of sanctions to reach nuclear deal
  • PBOC sets USD/CNY benchmark rate for today at 6.9396 (vs. 6.9488 estimate)
  • Chinese cities of Chengdu and Dalian lift lockdowns today, Monday, September 19, 2022
  • Fed’s record of tightening monetary policy without causing a recession ‘not great’
  • Swiss National Bank meeting this week, 100bp rate hike on the table – CHF impact
  • US President Biden says the US military will defend Taiwan if China invades
  • ANZ expects Federal Open Market Committee (FOMC) 75 basis point hike this week, 5% terminal rate
  • New Zealand services PMI for August rises to 58.6 (from 54.4)
  • ICYMI – Goldman Sachs Now Expects a 75bps Federal Reserve Rate Hike This Week
  • ICYMI – Germany has taken control of a large Russian oil refinery (a unit of Rosneft)
  • ECB chief economist Lane says further rate hikes ahead won’t be ‘painless’
  • ECB’s Nagel says bank has already agreed to further rate hikes when data warrants
  • Business Ideas Feed – Monday, September 19, 2022
  • Here’s what’s happening on the economic calendar in Asia – very light, Monday, September 19, 2022
  • Monday morning open levels – forex indicative prices – September 19, 2022
  • Post-merger bust continues as Ethereum sinks over weekend
  • Preview of the week ahead: the FOMC is the highlight
  • Goldman Sachs on the US Economy – More Aggressive Fed, Higher Unemployment, Weaker Growth
  • Escape or evasion? The USD made new multi-year/multi-decade highs. Can this continue?
  • VIDEO: Seeing is believing. In trading, the sense of sight is essential to your success.
  • The Canadian dollar hits a 22-month low. And after
  • Forexlive Americas FX news wrap: US dollar recovers a bit after UMich

Major exchange rates showed little net change for the session here to open the new forex week. And what a busy week awaits us. We have policy meetings and rate hikes coming from the Federal Open Market Committee (FOMC) of the Federal Reserve, the Monetary Policy Committee of the Bank of England, the Swiss National Bank and others. We also have a policy meeting at the Bank of Japan, where no change in monetary policy is expected.

In China, the cities of Chengdu and Dalian lifted their lockdowns today. Also with China, the People’s Bank of China cut its 14-day open market rate from 2.25% to 2.15%. The 7-day RR rate remained unchanged at 2.0%. Coming on Tuesday the 20th, the PBOC will set prime rates for one- and five-year loans. Since the MLF rate remained stable last week, no changes are expected for LPRs tomorrow.

The USD/CNY benchmark rate moved closer to 7 today.

Still on China, but from a geopolitical perspective, US President Biden in an interview on US television, 60 Minutes, said US forces would defend Taiwan in the event of a Chinese invasion. This contradicts current official US policy on the island. Stay tuned to this for White House withdrawals of the note/’clarification’ of the note/general muddying the waters on the note. It’s getting hard to pass off such comments from Biden as “blunders,” he’s said the same thing before and he’s a cunning character indeed.

During the 60 Minutes television program, he also presented an interview with Iranian President Ebrahim Raisi. His comments were not indicative of a quick deal on the nuclear deal with the United States. Oil rose during the session but has since retreated to be little changed.

Japanese markets were closed for a holiday today. UK markets will also be closed today for Queen Elizabeth II’s funeral. Today marks the last day of the official period of national mourning. The absence of UK markets will reduce interest and liquidity during the European/UK time zone.

Leave a Comment

Your email address will not be published.