- Fitch Ratings says Australia’s banks’ results show resilience
- Bank of England Wednesday – two Pills and a Baileys
- Chinese internet giant Baidu preparing to test driverless ride-hailing service in Europe
- Chinese company linked to TikTok bought $300,000,000 of $TRUMP Coin
- Brazil’s Lula: Want to create a currency that does not make us dependent on one currency
- Australian Q1 wage price index +0.9% q/q (expected +0.8%)
- Lula: Brazil strengthening relations with China: Brazil not afraid of US retaliation
- Trump says the relationship with China is excellent
- PBOC sets USD/ CNY mid-point today at 7.1956 (vs. estimate at 7.1813)
- South Korea unveils $3.25 billion lifeline for small firms facing U.S. tariff threat
- Tether purchased more than 4,800 Bitcoin at average US$95,319
- Recapping Japan April wholesale inflation – cost of inputs not a lot changed
- Trump accepts Qatar plane “will be used by our Government as a temporary Air Force One”
- Japan data – April PPI +0.2% m/m (expected +0.2%) & +4.0% y/y (expected +4.0%)
- UBS downgrades US equities to Neutral, but 12 month view is for higher
- South Korea April unemployment rate 2.7% (expected 3%, prior 2.9%)
- New Zealand retail sales indicator, April: -0.3% y/y (prior -1.6) & 0.0% m/m (prior -0.8%)
- Trump views “equity market performance as a real time barometer of his performance”
- ICYMI – Goldman Sachs forecasts S&P 500 as high as 6500
- Iran wants ‘concrete guarantees’ before reaching an agreement with the US
- Iran and Europe will meet on Friday
- Hassett says when Trump returns he’ll announce the next trade deal
- Oil: private survey of inventory shows headline crude oil build vs draw expected
- S&P is positive on the year
- Forexlive Americas FX news wrap: US dollar sellers return after lower CPI
- Financial Times reports that China has criticized the trade deal between the US and UK
- What’s driving Tesla’s rise?
- NZDUSD climbs after sellers miss their shot at breakdown
- Trade ideas thread – Wednesday, 14 May, insightful charts, technical analysis, ideas
News
and data flow was fairly light during the session.
It
began with a surprise build in crude inventory showing in the private
(API) survey. Oil has dribbled a little lower during the session with
the large draw cited as a contributor. Official US government
inventory data will follow mid-morning on Wednesday in the US.
From
Japan we had wholesale inflation data. The April PPI came in as
expected and down a touch from March. The slightly stronger yen
helped ease imported inflationary pressure but fuel and rice prices
remained high. Japan’s government has released rice from its strategic
reserve but price decline is slow to filter through.
USD/JPY
ticked up just a little after the data but soon reversed. Highs were
around 147.65 and the trek lower took the rate to circa 147.01. The
Bank of Japan bought back 20bn yen in JGBs.
The
People’s Bank of China continued to mark the onshore yuan stronger,
setting it at its highest against the USD (ie the lowest for USD/CNY)
since April 3 at 7.1956, well under the psychological 7.2 level.
Trump
crossed the wires with a few comments in a Fox interview but with
nothing to move markets around. He defended accepting the free plane
from Qatar to be used as Air Force 1 in a social media post. News crossed also that a
Chinese company linked to TikTok bought US$300,000,000 of TRUMP
Coin.
From
Australia we had Q1 wages data, the 0.9% q/q rise was above the 0.8%
consensus expectation but matched the Reserve Bank of Australia’s forecast. The RBA is expected to cut its cash rate at its meeting on
May 19-20. The data today, having hit their target, is unlikely to
stop that cut.
This article was written by Eamonn Sheridan at www.forexlive.com.
