CNH: USD/CNH Close To 50-day EMA Resistance, CNH/JPY To Multi Month Highs
Sep-25 21:38
USD/CNH tracks near 7.1450 in early Friday dealings, after CNH lost 0.11% for Thursday's session. Broader USD sentiment remained on the front foot, with the BBDXY up a further 0.50%, the DXY up by around 0.60%. Spot USD/CNY finished up at 7.1339. The CNY CFETS basket tracker rose 0.20% to 96.63 (which is still under earlier Sep highs).
- Firmer-than-expected US GDP data on Thursday, alongside lower-than-expected jobless claims kept the greenback trading with a very supportive tone. throughout the US session. The DXY appears to have solidly broken above the 50-day EMA, a bullish development. The index is up over 2% from post FOMC lows.
- For USD/CNH, Thursday intra-session highs were close to the 50-day EMA resistance point (near 7.1485/90). A clean break higher could bring the 100-day EMA into focus (near 7.1720/25).
- The CNH continued to outperform the majors, with JPY and EUR both losing 0.60% in Thursday trade. CNH/JPY is near 20.97, around fresh highs since Feb this year. EUR/CNH is around 8.3330, still above earlier Sep lows.
- Via Axios: "President Trump on Thursday signed an executive order that allows a deal for the sale of TikTok's U.S. assets to move forward." The US version of the company will reportedly be worth $14bn.
- The local data calendar remains empty today, with Aug industrial profits out tomorrow.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
ASIA: Coming Up In Asia Pac Markets On Wednesday
Aug-26 21:03
| 0130BST | 0830HKT | 1030AEST | Australia Westpac Leading Index |
| 0200BST | 0900HKT | 1100AEST | Australia 2035 Bond Sale |
| 0230BST | 0930HKT | 1130AEST | Australia July CPI |
| 0230BST | 0930HKT | 1130AEST | Australia Q2 Construction Work Done |
| 0230BST | 0930HKT | 1130AEST | China July Industrial Profits |
| 0300BST | 1000HKT | 1200AEST | South Korea July Retail Sales |
| 0501BST | 1201HKT | 1401AEST | Fed's Barkin Repeats Remarks On Economy |
Source: Bloomberg Finance L.P./MNI
FED: WSJ, BBG Sources Pieces Point To Further Trump Attempts To Shape Fed
Aug-26 20:18
Two separate articles published in quick succession Tuesday afternoon point to multiple angles being pursued by the Trump administration to exert more influence on the composition of the FOMC.
- Bloomberg's "Trump Team Is Weighing Options to Extend Influence to Fed Banks" (link) says that the Trump administration is "reviewing options for exerting more influence over the Federal Reserve’s 12 regional banks that would potentially extend its reach beyond personnel appointments in Washington, according to people familiar with the matter."
- From the Bloomberg piece: "The Board of Governors is next scheduled to authorize the current roster of reserve bank presidents in a once-in-five-year exercise in February... Several of the Fed’s regional presidents began to grow concerned earlier this summer about what Trump’s plans for the central bank could mean for their jobs, according to people familiar with the matter. The president’s announcement late Monday exacerbated those concerns, with presidents making a round of calls to each other about what Cook’s firing could mean for them, according to one person familiar with the matter."
- The Wall Street Journal's "Trump Weighs Quickly Announcing Nominee to Replace Lisa Cook on Fed Board" (link) cites "people familiar with the matter" as saying President Trump wants to "move quickly to announce a nominee" to succeed Cook.
- One potential candidate per the WSJ is ex-World Bank President David Malpass. He wrote in a WSJ op-ed last week that "One foundational change for the Fed would be anchoring its inflation-fighting policies in forward-looking, market-based data with a goal of defending the dollar and expanding its use as the world's reserve currency. There's no necessity for the current high level of interest rates and bond yields....Another foundational change for the Fed would be shrinking itself -- a move that's long overdue."
CANADA DATA: Manufacturing, Wholesale Trade Seen Continuing Recovery In July
Aug-26 20:01
StatCan estimates that both manufacturing and wholesale trade sales increased strongly in July, portending a continued recovery from a weak Q2.
- The manufacturing flash estimate is for 1.8% M/M growth, with the transportation equipment and petroleum/coal subsectors expanding the most.
- Manufacturing sales rose by 0.3% in June, for the first rise since January - a 1.8% July increase would be the best in 17 months, and raise the 3M/3M annualized rate to -11.7% from -18.0% (which followed outsized gains in Q1 that were partly tariff-front running related).
- For wholesale trade, StatCan estimates a 1.3% rise (ex-petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain), in large part reflecting gains in motor vehicle/motor vehicle parts and accessories sales.
- This wholesale category rose 0.7% M/M in June, the first rise since February. A 1.3% rise in July would help boost the 3M/3M annualized growth rate to -2.5% from -6.6% in June (again, reflecting giveback from a jump in Q2).
- We get the full reports and data on September 15, but the July data suggests that after a very negative quarter for both manufacturing / wholesale sales, there has been a nascent recovery.
