Weekend:
USD/JPY
declined sharply, falling 150 or so points from daily highs above 133.50 to just below 132.00. There was no obvious catalyst to trigger the selloff, it continued the slide it started after last week’s FOMC statement and Chairman Powell’s press conference.
It was a busy weekend and day for data releases. Most notably, the official Chinese manufacturing PMI for July fell back into contraction. The other Chinese PMI, from Markit/Caixin, held just above the 50 boundary at 50.4. It’s not new news that the Chinese economy is suffering from recurring COVID-related restrictions, but the PMI’s drop into contraction was a shock/surprise.
On the central banking front, comments over the weekend from the Federal Reserve’s super-dove Kashkari were particularly hawkish. He dismissed concerns about the economy falling into recession, saying that while the Fed was unhappy if that happened, it would still raise rates if necessary to bring inflation back to its target.
Other than USD/JPY, other major exchange rates moved only in minor ranges. EUR, GBP, AUD and NZD are only a slight better offer against the USD.
cnbctv18-forexlive
