The 150 region on the USDJPY has seen intervention from Japan's Ministry of Finance in the recent past. Remember that the move higher in US yields, recently supported by a strong US retail sales print, also supports the dollar yen.
Teslas earnings are due out after Wednesday's close and there are a number of factors to consider. Teslas market share is around 20% of the global EV market at second, only to the Chinese manufacturer, BYD.
There are some mixed messages for Soybean markets with a bumper crop from Brazil, but high temperatures over the US Summer have been impacting expectations for the US’s crop grade and concerns that China’s consumer habits may be changing too have weighed on sentiment.
The latest PPI data this week out of the US was hot and the US CPI yesterday was mildly firmer than markets were expecting. However, recent more dovish Fed rhetoric has increased expectations of the Fed reaching peak rates.
Over the last few days, markets have been confronted by a confused message. On the one hand, the Feds recent messaging has become more dovish indicating that the recent surge in yields could mean the federal reserve doesn’t need to hike in November. However, on the other hand, the PPI print on Wednesday surprised significantly to the upside indicating the Fed had more work to do.
The latest CFTC report shows that traders are stretched to the long side on the USD. When you can see stretched positioning it means that there is a vulnerability for a sharp correction if there is any reasons for USD selling.
US CPI is expected to pull back to 3.6% from August’s print of 3.7% and the core is expected to fall for the sixth month in a row down to 4.1% from the prior reading of 4.3%. This should keep yields and the USD mildly pressured.
The recent run of bad news from China looks like it may have run its course with analysts' hopes rising that the worst may be behind China. Hopes for a more positive Q4 are starting to build with strong levels of fiscal support and the latest PMI prints out of China show moves into expansionary prints above 50.
Taking a look at the US Labour report there is a chance that gold can recover it’s recent losses if we see a big miss in the report. Remember that the Fed sees the labour market through an inflationary or…
A hawkish Federal Reserve and expectations of increasing interest rates have kept major stocks pressured over the month of September. The higher rates for longer narrative from the latest Fed meeting has helped push up yields and US interest rate expectations which is naturally more challenging conditions for US companies.