ForexLive Asia-Pacific FX news wrap: Subdued ranges heading into the US market holiday |


Barclays slashed their Brent Crude oil price forecast by $8 a barrelWSJ survey of economists indicates that the probability of a US recession is down sharplyHousehold spending in Australia, December, -3.1% m/m (prior +1.8%)Reports Qatar appears to have stopped sending LNG tankers through Bab el-Mandeb StraitJP Morgan’s CEO Dimon warns inflation may be stickier, rates higher, than markets expectOil – Houthis fired an anti-ship cruise missile at a US Navy shipMr. JGB: Japan’s stable inflation target achievable in 2024, but not in the way BOJ thinksPeople’s Bank of China left its MLF rate unchanged – recapSchumer says US congressional leaders have agree to a stopgap funding measurePeople’s Bank of China set MLF rate at 2.5% (prior 2.5%)Japan’s 2 year yield has dropped back under zero, first time since July 2023PBOC sets USD/ CNY reference rate for today at 7.1084 (vs. estimate at 7.1684)Australian private survey of inflation soared by 1% m/m in December, the most in 17 monthsTaiwan’s Presidential election: Pro-sovereignty DPP’s William Lai winsPeople’s Bank of China interest rate cut expected todayUBS targets higher for the S&P 500, sees strong earnings, strong economySix arrested in plot to shut down the London Stock ExchangeBarclays moved its forecast for the first Federal Reserve rate cut to March (from June)Weekend: ECB chief economist Philip Lane nominates June ‘key data’ for rate cutsWeekend: Ex-PBoC official says China’s property downturn may continue for two more yearsTrade ideas thread – Monday, 15 January, insightful charts, technical analysis, ideasMonday morning open levels – indicative forex prices – 15 January 2024Weekly Market Outlook (15-19 January)Why the bitcoin ETF inflows are a huge disappointment

It
was a day of light market news flow only, although there were some
potentially significant items for energy markets:

there
are reports that Qatar has stopped its shipments of LNG through the
Bab el-Mandeb Strait (and thus the Suez Canal)Houthis
fired a cruise missile at a US Navy ship

If
you take a glance at the oil price its up, but barely noticeable.

In
political news we had

the
Saturday election in Taiwan saw William Lai, of the pro-sovereignty
Democratic Progressive Party (DPP), elected President, although the
party did lose its parliamentary majorityUS
Senate Democratic leader Schumer said congressional leaders have
agreed to a stopgap funding measure

In
central bank developments, the People’s Bank of China set the rate
on this month’s Medium-term Lending Facility (MLF) at an unchanged
rate of 2.5% despite wide (but not unanimous) expectations of a 10bp
cut. This despite continued disinflation in China and is reflective
of the concern the PBoC have of yuan weakness prompting capital
outflow.

USD/JPY
rose on the session, the drop in 2-year Japanese Government Bond
yields back below zero weighed on the yen.

It was a mixed bag
across the major currencies. The USD was net weaker against the EUR,
GBP and CAD. AUD and NZD underperformed.

Offshore
yuan is higher on the session.



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