Although data distortions are still likely to influence the December U.S. CPI report, strong results could continue to stoke hawkish Fed expectations. Our Event Guide for the U.S. CPI points out that the bullish dollar reaction to last week’s mixed NFP report could be hinting at how markets could respond to the inflation release. Here’s what…
Summary: Yuan rose 4.5% in 2025, its best year since 2020 Former SAFE official says gains lack fundamental backing Strength driven by weaker dollar demand, not inflows Falling REER does not imply undervaluation Disinflation and output gap argue against stronger yuan Yuan’s rebound lacks fundamental backing despite 2025 gains, former FX regulator warns. Info via Reuters report. The Chinese…
Federal Reserve (Fed) Chair Jerome Powell said in a statement that the US Justice Department has threatened criminal charges against him in connection with his Senate testimony last June, during which he discussed the estimated $2.5 billion renovation. Powell described the move as unprecedented and a direct challenge to the Fed’s independence. Key quotes Grand jury subpoenas were served on Friday. New…
The PBOC follows a managed floating exchange rate system that allows the value of the yuan to fluctuate within a certain range, called a “band,” around a central reference rate, or “midpoint.” It’s currently at +/- 2%. The previous close was 6.9784. Injects 86.1bn yuan, 7-day RRS, 1.4%
A group of European nations, headed by the United Kingdom (UK) and Germany, is discussing plans to increase its military presence in Greenland to show US President Donald Trump that the continent is serious about Arctic security, Bloomberg reported on Sunday. The source said that Germany will propose setting up a joint NATO mission to protect the Arctic region….
US equity index futures are opening lower on Globex to begin the week’s trade. I guess I should come up with a narrative to ‘explain’, right? M’eh. The gap is small. If I had to pin it on anything it’d be the ratcheting higher of geopolitical tensions. But, I really wouldn’t bother too much. The gap is very small…
Consumer confidence in the US improved slightly to start the year, with the University of Michigan’s Consumer Sentiment Index rising to 54 in January’s preliminary reading, from 52.9 in December. This print came in slightly better than the market expectation of 53.5. The Consumer Expectations Index rose to 55 from 54.6 in this period, while the 1-year Consumer Inflation…
The PPI data listed on the calendar from Japan is not due today, its due on Wednesday 14 January 2026. Japanese markets are closed for a holiday today. The data from Australia is not likely to move Oz markets around much at all upon release. This article was written by Eamonn Sheridan at investinglive.com.
Rather than signaling a setback, December’s modest employment gain and rising unemployment rate reinforce our view that Canada’s labor market recovery is underway but will likely prove choppy, with slack absorbed only gradually over time, Royal Bank of Canada Senior Economist Claire Fan reports. December employment gains modest as unemployment rises “Employment grew by just 8,000 in December, following…
The U.S. dollar is moving to the upside, with the Dollar Index climbing to its highest level in about a month and notable strength against the JPY (up 0.45%). The greenback is also higher vs the other major currency pairs with USD up 0.11% vs the EUR and 0.19% vs the GBP. The AUDUSD is trading down -0.33% (higher…
