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August 27th - Sources revealed that the Hong Kong IPO price for fast fashion platform Shein (00625.HK) may be set at approximately HK$48.56 per share, slightly higher than the median of the offering price range of HK$47.6 to HK$49.5. Based on the offering price of approximately HK$48.56 per share, Shein will raise HK$13.6 billion. It is understood that the offering price is still under discussion and may be subject to change.On August 27th, Bank of Japan Deputy Governor Ryozo Himino stated on Thursday that timely interest rate hikes would help prevent a sharp rise in inflation, thus preventing a forced, sudden rate increase in the future. Speaking to business leaders, Himino said, "If core inflation deviates from and exceeds our 2% target, it will have an adverse impact on the economy. Compared to the past, we should pay more attention to the upside risks to prices." He added, "Every monetary policy meeting should be conducted in depth from these perspectives."On August 27th, the State Administration for Market Regulation announced that Chinas Enterprise Credit Index for July was 158.87, showing a temporary pullback from previous highs, but the resilience of enterprise credit remains evident. The overall credit foundation of enterprises nationwide remains solid. In July, the China Enterprise Credit Index decreased by 2.35 points compared to June, influenced by factors such as the increase in the number of newly added enterprises to the list of enterprises with abnormal operations, resulting in a significant decline in regulatory sub-indicators. Simultaneously, the credit repair process accelerated, with a corresponding increase in the number of enterprises removed from the list of enterprises with abnormal operations, continued improvement in regulatory activity, a decrease in the number of enterprise deregistrations compared to the previous month, and a stronger willingness of business entities to continue operating. The fundamental trend of improving enterprise credit remains unchanged. Industry-specific enterprise credit levels declined compared to the previous month. In July, the top five industries in terms of credit index ranking were finance, electricity, heat, gas and water production and supply, residential services, repair and other services, water conservancy, environment and public facilities management, and manufacturing. Industry credit indices generally stabilized this month. Amidst index fluctuations, the mining industry index rose against the trend, while the credit index rankings for agriculture, forestry, animal husbandry and fishery reached new highs this year.Qantas executives said outbound demand from Australia to the United States is strong, while inbound demand is also performing well, and the market is recovering.August 27th - According to US media reports on the 26th, US diesel inventories have fallen to their lowest level for this time of year in history. With increased demand for agricultural fuel and winter heating, diesel prices, already nearing record highs, may rise further. Data released by the US Energy Information Administration on the same day showed that as of the week ending August 21st, US distillate fuel oil inventories (whose main component is diesel) stood at 103.4 million barrels, a decrease of 2.2 million barrels from the previous week, and about 14% lower than the average for the same period over the past five years. Bloomberg, analyzing data dating back to the early 1980s, said that current inventories are at their lowest level for this time of year in history. Data released by the American Automobile Association showed that on August 26th, the average retail price of diesel across the US was $5.62 per gallon, higher than $3.70 a year ago, and approaching the record high of $5.82 per gallon set in June 2022.

USD/CAD declines to 1.3500 on firmer Oil prices, BoC concerns over US inflation, and Fed Minutes

Daniel Rogers

Apr 10, 2023 14:35

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The USD/CAD maintains losses close to 1.3500, shattering a four-day winning trend, as traders brace for key Easter Monday data/events on major bourses. However, the recent decline in the Loonie-U.S. dollar exchange rate may be due to the increase in the price of WTI petroleum oil, Canada's primary export. In contrast to the recent increase in ardent Fed forecasts, the Bank of Canada's (BoC) dovish bias poses a challenge to pair sellers.

 

After increasing for three consecutive weeks, WTI crude oil prices gain 0.61 percent intraday near $80.00. Recent increases in the price of black gold may be due to geopolitical concerns surrounding China and Taiwan. In addition to the supply cut by OPEC+ and the faltering US dollar, the energy benchmark is sustained by the supply cut by OPEC+ and the weakening US dollar.

 

However, the US Dollar Index (DXY) has fallen for three consecutive weeks and is under pressure near 102,000.

 

Fears of higher Fed rates versus inaction from the Bank of Canada (BoC) grew after the upbeat US Jobs report versus the lack of significant positives in the March Canadian jobs report.

 

As a result, the CME's FedWatch Tool indicates a 69% chance of a 0.25 basis point rate hike in May, up from 55% prior to the US employment report.

 

Canada's headline Net Change in Employment increased to 34.7K in March from 21.8K in February, compared to the market consensus of 12K, while the Unemployment Rate came in at 5% versus the analysts' estimate of 5.0%. During the specified month, the Participation Rate decreased to 65.6% from the expected and previous rate of 65.7%. In addition, the average hourly wage fell 5.2% year-over-year in March, down from 5.5% in February.

 

In contrast, the US Bureau of Labor Statistics (BLS) reported that Nonfarm Payrolls (NFP) increased by 236K in March, the lowest increase since January 2021 (considering revisions), compared to the expected 240K and the previous 330,000. Additionally, the unemployment rate fell from 3.6% to 3.5%, while the labor force participation rate rose from 62.6% to 62.6%. The annual wage inflation rate decreased from 4.6% to 4.2%, below market expectations of 4.3%.

 

Futures on US equities ended higher, but yields remain under pressure ahead of the crucial BoC monetary policy meeting, US inflation, and Fed Minutes. Given the dovish concerns from the Bank of Canada (BoC) and the likely hawkish comments in the FOMC Minutes, the USD/CAD may see additional gains, barring any unexpected developments.


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