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August 13th - According to foreign media reports, 83% of economists expect the European Central Bank (ECB) to raise its deposit facility rate by 25 basis points to 2.50% in September; 80% expect the rate to remain at 2.50% until the end of the year; and 63% expect it to remain at least 2.50% until the third quarter of 2027. Of the 69 economists surveyed, 57 (approximately 83%) expect a rate hike next month, a higher percentage than the 72% before the July meeting and 65% in June. This indicates that following the June rate hike, market consensus on another ECB rate hike in September is strengthening. Nomura Securities points out: "The longer oil prices remain at current levels and the higher they rise, the greater the risk of a second round of effects. The ECB cannot act before seeing these effects, but they can act in advance—which is exactly what the ECB has been doing. The risk is that if the ECB only raises rates once, it will look like a fine-tuning operation, which is not known to be the way monetary policy should be done. If they raise rates once, they will likely raise them again. Given that a rate hike in June is an obvious option for the ECB, we believe the probability of another rate hike is high."Iranian intelligence: Two “terrorist extremist group” action teams were destroyed in southeastern Iran, four terrorists were arrested, and two of them were killed.August 13th - Even after sources indicated that Prime Minister Sanae Takaichis government supported an interest rate hike, the yen remained near a key level against the dollar. The yen held steady on Thursday, trading around 159.36 against the dollar. Historically, when the exchange rate approaches 160, it usually signifies potential government intervention to support the yen. According to sources, the next interest rate adjustment is likely in September or October. They added that the central banks concerns about the weak yen pushing up prices, coupled with the governments desire to enhance the effects of recent US-Japan currency interventions, have led to a consensus on the necessity of an imminent rate hike. Investors said the news had little impact on the yen, as the market had already priced in a rate hike from the Bank of Japan. The yen has continued to weaken recently due to Japans large interest rate differential with the US and its heavy debt burden.August 13th - According to Lighthouse Pro, as of August 13th, the total box office for August 2026 has exceeded 2.5 billion yuan. "Spider-Man: New Day," "The Eight Immortals," "Welcome to the Dragon Restaurant," "Kung Fu Womens Soccer," and "The Annual Meeting Cant Stop! 2" are currently ranked in the top five at the August box office.A Reuters poll found that 55 out of 69 economists believe the European Central Banks deposit rate will reach 2.50% by the end of 2026. (In a July survey, 49 out of 74 economists held this view.)

AUD/JPY declines below $90.00 as market focus shifts to China's official PMI data

Daniel Rogers

Dec 30, 2022 11:32

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The AUD/JPY pair has abandoned the psychological support at 90.00 during the Asian session. As a spike of Covid-19 instances in China drives other countries to implement severe safety procedures for Chinese immigrants, the risk barometer has detected a sell-off. An increase in the number of Covid cases in China has a negative impact on the Australian currency, since more supply chain disruptions may limit trade activity.

 

In an effort to alleviate supply chain constraints, the declaration that China will reopen in January 2023 has generated new difficulties. Major nations are requiring negative Covid reports on Chinese immigration in order to safeguard themselves from the outbreak. During a briefing on Thursday, the head epidemiologist at China's Center for Disease Control and Prevention (CDC) warned that Covid is expected to spread over the holiday season.

 

In addition to the Covid scenario, investors are concerned about China's official PMI data, which will be revealed next weekend. The consensus forecast for the Manufacturing PMI from the National Bureau of Statistics (NBS) is 49.2, up from the previous reading of 48. Non-Manufacturing PMI is forecast to outperform the previous report by a wide margin, as the current economic data is anticipated to be 51,4 versus 46,7.

 

Australia is China's most important trading partner, and economic uncertainty in China leads the Australian Dollar to fluctuate.

 

The Japanese Yen is gaining ground in Tokyo despite the beginning of funds-supplying operations against pooled collateral by the Bank of Japan (BoJ) on Thursday. On January 4, the Bank of Japan will provide around one trillion yen at zero percent interest.