ForexLive Asia-Pacific FX news report: Gold hit record high, silver and copper also rose | Forexlive

  • Federal Reserve speakers on Monday will include Bostic, Barr, Waller and Jefferson
  • Iranian state media has confirmed that there are no survivors of the helicopter crash
  • The Saudi Crown Prince postpones his trip to Japan
  • ICYMI – Chinese loan interest rates remained stable: 1 year LPR @ 3.45% 5 years @ 3.95%
  • PBOC sets USD/CNY central rate at 7.1042 (vs. estimate at 7.2162)
  • China, as expected, sets the 1- and 5-year LPR rates unchanged
  • Bank of England Deputy Governor Ben Broadbent speaks on Monday
  • PIMCO says the next move from the Federal Reserve and the RBA will be a cut rather than an increase
  • Weak consumption in Japan could put further pressure on the BoJ to raise rates and slow the yen’s decline
  • Oil – Morgan Stanley expects demand growth to be higher than normal
  • New Zealand’s RBNZ Monetary Policy Shadow Board recommends keeping the cash rate this week
  • UBS expects the Federal Reserve to cut interest rates later this year. This is the reason
  • Strong evidence points to significant Chinese currency intervention in April to support the CNY (yuan).
  • A helicopter carrying Iranian President Ebrahim Raisi and other leaders has gone missing
  • Trading ideas topic – Monday May 20, insightful charts, technical analysis, ideas
  • Open levels on Monday morning – indicative forex prices – May 20, 2024
  • Federal Reserve Chairman Powell’s speech on Sunday: No comment on monetary policy or the economy
  • Weekly Market Outlook (May 20-24)
  • Join us this week in Johannesburg, South Africa
  • Forexlive Americas FX news report May 17. The price of the DXY index closes below the 100W MA

The week started with ears open for a speech on Sunday (US time) by Federal Reserve Chairman Powell. It was a speech at a law school, which Powell delivered remotely via video when he contracted Covid late last week. Powell did not comment on the economy or policy.

Data flow hardly existed.

However, we did have the Loan Prime Rate (LPR) settings of the People’s Bank of China. LPRs play a crucial role in determining loan and mortgage interest rates in China. The PBoC left both the 1- and 5-year rates unchanged, as widely expected, at 3.45% and 3.95% respectively. The last time the 1-year rate was cut was in August last year, while the 5-year rate was cut in February this year. The People’s Bank of China is expected to continue easing monetary policy. One compelling reason is that more liquidity will be needed for China’s banks to buy government bonds, including the issuance of ultra-long special government bonds that started last Friday – these bonds raise money for economic construction (stimulus) purposes.

On the news front, a helicopter carrying Iranian President Ebrahim Raisi and Iranian Foreign Minister Hossein Amir-Abdollahian crashed in a mountainous area of ​​Iran’s East Azerbaijan region, northwest of Tehran and bordering Azerbaijan. It took many hours for the crashed helicopter to be found, and when it was, it was nothing but smashed and burned as wreckage. No one on board survived.

This may have consequences for the oil price. Even though there is certainly no evidence of foul play, if it were to surface and perhaps the blame was placed on the US or Israel, it would be an escalation of the already tense situation in the Middle East. That would, at the margin, support oil.

In other news, Saudi King Salman bin Abdulaziz will undergo a treatment program at Al Salam Palace in Jeddah for pneumonia. Saudi Crown Prince Mohammed bin Salman was scheduled to be in Japan from May 20 to 23. He postponed the trip. He was to meet Prime Minister Fumio Kishida.

Oil prices rose today with both Middle Eastern products.

Gold, silver and copper jumped. Gold to record high.

USD/JPY rose to 156.00 and has retreated again. Major FX was mainly tied in small ranges.

Brent crude, small opening gap to start the week:

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