Attention to the signing-style agreement between the U.S. and China, the content of the agreement and future discussions! "Key points and event schedule for January 15"
Yesterday, the dollar/yen broke above 110 as the Tokyo market opened!
It extended to 110.20 as stops were triggered.
Thereafter there was a lack of movement, hovering around 110 and showing little movement in other currencies as well.
With the US currency report released, besides China being removed from the list of manipulators, Switzerland was added to the monitoring list. Switzerland protested, but the market reacted with Swiss francs buying, and EUR/CHF advanced to its highest level since 2017 as the franc strengthened.
Today is a fifty-day.
I would like to watch for real demand moves and focus on the actual value of the fixing and the target rate.
◎ Today's Focus
1) Signing ceremony for the first phase of US-China talks
Today is scheduled for the signing ceremony of the first phase agreement of US-China talks.
There have been reports that China will be removed from the list of currency manipulators, that current tariffs will continue until the second phase, and that China will expand imports from the United States, among other points.
What the agreement contains and what the subsequent talks will cover are important, and it remains to be seen whether tensions between the US and China will persist.
2) Key Officials’ Remarks
A number of important remarks are scheduled.
Among them, attention should be paid to remarks by Saunders, external member of the BoE.
Regarding the Bank of England, there is a video summary from yesterday, so please refer to it here↓↓↓
In addition, there are remarks from Patrick Harker, President of the Federal Reserve Bank of Philadelphia, and Robert Kaplan, President of the Federal Reserve Bank of Dallas, who hold voting rights on this year's FOMC.
I would like to keep an eye on these figures in particular.
3) Middle East Risk
While leaders of the UK, Germany, and France call for Iran to comply with the nuclear agreement, Iran has pushed back, leaving tensions unresolved.
There is also concern about moves by other signatory countries such as Israel and Saudi Arabia; we hope no country follows Iran.
There are reports that Iraqi bases hosting US forces have continued to come under shelling.
If American personnel are harmed, there is a risk of renewed attacks on Iran, so caution is required.
It would be nice if Abe-san, visiting the Middle East, could skillfully mediate...
◎ Today's Event Schedule
Wednesday, January 15
Signing ceremony for the first phase agreement of US-China talks
09:30 JPY Kuroda, Bank of Japan Governor, remarks
14:00 JPY Sakura Report (BOJ Regional Economic Report)
16:45 EUR France HICP (Consumer Price Index)
17:00 EUR Spain HICP (Consumer Price Index)
17:30 SEK Sweden CPI (Consumer Price Index)
17:40 EUR Holzmann, Austrian National Bank President, remarks
17:40 GBPSaunders, BoE external Member remarks
18:30 GBPUK CPI (Consumer Price Index)
22:30 USD PPI (Producer Price Index) / NY Fed Manufacturing Index
Thursday, January 16
00:30 USD Crude oil stocks
00:30 EUR Villeroy & Boch France Central Bank President remarks
01:00 USD Daily San Francisco Fed President remarks
01:00 USDHarker, Philadelphia Fed President remarks
02:00 USDKaplan, Dallas Fed President remarks
03:00 EUR Weidmann, German Bundesbank President remarks
04:00 USD Beige Book (Beige Book: Federal Reserve District Economic Reports)
