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  • richard evans

US dollar a touch weaker as China talks of huge market support measures

Good morning


Equities were mixed in Asian trading overnight, although talk of a huge rescue package from China to the tune of US$270+bn has given some much needed support to their markets, with the Hang Seng up 2.5%, and sent USDCNY sharply lower from the 7.19 area to 7.1650.   Elsewhere in Asia, BoJ left rates unchanged at -0.1% as expected, USDJPY is off its recent highs that were around 148.50, now 147.35 after an early morning dip to just below 147.00 on broad USD weakness. 


That USD weakness has seen GBPUSD up to 1.2745 this morning, EURUSD has also pushed higher to hit 1.0915. both 10 pips or so off those highs for now.  GBPEUR is higher again at 1.1680.  UK data this morning has shown net borrowing in December at £6.8bn, some £4.5bn below estimates and over half the amount of borrowing in the previous December.  This potentially opens the door for the Chancellor to make further tax cuts.


The House of Lords has voted against the UK-Rwanda treaty until asylum procedures are improved.  The vote is not binding on the government, but gives an idea as to the opposition Sunak is likely to see when the bill is debated in the Lords.   


In the Middle East, some talk doing the rounds that Israel have proposed a 2 month ceasefire that aims to secure the release of all remaining hostages.  I’m not sure at this stage how true this is, nor how the proposal sits with Hamas.  Meanwhile US and UK have hit Houthi targets once again in a bid to prevent attacks on Red Sea shipping.


We seem to have survived Storm Isha, but we now look forward to Storm Jocelyn bringing more strong wind and heavy rain later today.  It will hopefully calm down for a few days after that as we move towards the end of January. 


It’s one of those days where I find myself with little else to write about so I’ll keep it brief this morning.  Have a great day.


-  09.00 ECB bank lending survey

-  15.00 EU consumer confidence

-  21.45 NZ CPI

-  23.50 Japan trade balance


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