Central Banks Forex Indices Market Intelligence News

ForexLive Asia-Pacific FX news wrap: Awaiting the European Central Bank meeting

image

The
European Central Bank meeting is today. The Bloomberg survey
shows near unanimity in forecasts for a +75bp rate hike. All but 2
economists of 51 that Bloomberg surveyed expect a 75bps hike.
This will take the deposit rate to 1.5%. Market pricing is nailing
+75bp too.

EUR/USD
has dribbled a little lower on the session here in Asia. The USD has
shown a little strength more widely, but the moves are tiny. AUD/USD
and NZD/USD are little net changed on the session.

In
Australia, the Reserve Bank of Australia meet next week, Tuesday
November 1. Yesterday we had higher than expected inflation reported
(data for Q3). I posted yesterday that two of Australia’s ‘bigfour’ banks left their forecasts unchanged for a +25bp rate hike
next Tuesday.

I
also posted a preview from National Australia Bank, another of the
big four, who said:

As
I post, the latest I have seen from NAB is that they are tipping a
+25bp as ‘more likely’ than +50.

However,
Westpac (also one of the four) have embraced the ‘high and wide’ CPI result, tipping
+50bp:

While
on central banks, on Friday we get the Bank of Japan. No change from them is expected.

The Chinese yuan lost ground today:


Notice: ob_end_flush(): failed to send buffer of zlib output compression (1) in /var/www/vhosts/beta.livemarkets.com/wp-includes/functions.php on line 5420

Notice: ob_end_flush(): failed to send buffer of zlib output compression (1) in /var/www/vhosts/beta.livemarkets.com/wp-includes/functions.php on line 5420