- Goldman Sachs says President Trump's victory in 2024 will likely cause bond yields and the US dollar to rise
- Warning from Wells Fargo: Stocks at all-time highs based on false expectations
- Chinese authorities 'ask' funds to restrict short selling of stock index futures
- Societe Generale expects USD/JPY to fall below 140 yen in Q2 2024
- Former St. Louis Fed President Bullard says the Fed could cut interest rates as early as March
- RBNZ proprietary Q4 CPI indicator 4.5% YoY (previously 5.2%) – this is the sectoral factor model
- North Korea fires multiple cruise missiles into Yellow Sea
- Citi aims for the S&P 500 index to reach 4,800 by mid-year and 5,100 by year-end.
- PBOC sets today's USD/CNY midpoint at 7.1053 (expected value is 7.1825)
- US Politics – Trump wins the NH primary, securing the Republican nomination
- Japan – Keidanren's business leader says he aims for wage increases to outpace inflation
- Japan's own December manufacturing PMI preliminary figure 48.0 (previously 47.9)
- New Zealand Q4 CPI inflation data shows high domestic inflation, RBNZ likely to see through
- Australia's Westpac leading indicators show signs of stabilization rather than upturn in cycle
- Japanese data – December exports +9.8% YoY (expected +9.1%)
- A third of respondents expect Bitcoin to be worth less than $20,000 by the end of 2024, according to a Deutsche Bank survey.
- UBS predicts a rise in the EUR/CHF and also says US dollar buying appears to be at its limit.
- Swiss National Bank President Jourdan spoke on Tuesday about the Swiss franc, inflation and the economy.
- Australian January PMI preliminary figures: Manufacturing 50.3 (previous 47.6) Services 47.9 (47.1)
- NZD/USD soars after Q4 data shows huge non-tradable inflation rate of 5.9%
- New Zealand Q4 CPI 0.5% QoQ (expected 0.5%), 4.7% y/y (expected 4.7%)
- Oil – Private survey on inventories finds headline demand much higher than expected
- US forces attack Iranian-backed militants in western Iraq
- Forexlive Americas FX News Wrap: The US Dollar Shows Its Power
- Trade Ideas Thread – Wednesday, January 24th, Insightful Charts, Technical Analysis, and Ideas
The session began here with the release of Q4 2023 inflation data from New Zealand. Key results showed that inflation has fallen in line with consensus expectations and at a faster rate than the Reserve Bank of New Zealand had anticipated in its latest Monetary Policy Statement (MPS) (November 2023). However, the data also showed that non-traded inflation remained higher than both the market and the RBNZ expected. (In summary, tradable inflation is primarily driven by international factors and market conditions, while non-tradable inflation is driven by domestic economic conditions and policies.) NZD/USD has surged and As posted, the data is still above previous levels.
USD/JPY has been falling during the session. As interest rate hike expectations have been revised upward, Japan's 10-year government bond yield has risen by 10 bps (20 years + 12). Also. Japanese data showed exports improved significantly in December.
Other major FX are also included. EUR/USD and GBP/USD are rising, while AUD and CAD are seeing some pressure.
China remains the focus of regional stocks. Reuters reported, citing two anonymous sources, that Chinese authorities had “asked” funds to restrict short selling of stock index futures.
