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On September 14th, Baker Hughes Oilfield Services (BKR.O) Chairman and CEO Lorenzo Simonelli stated that he has not yet observed any signs of a slowdown in investment in large energy projects due to rising borrowing costs, and that the construction of global artificial intelligence infrastructure is driving strong demand for natural gas and electricity. Simonelli said, "We havent seen any signs of a slowdown in investment, and whether a project can secure financing actually depends on existing offtake agreements and the outlook for energy demand." Simonelli added that while financing remains a crucial factor for project considerations, population growth, industrial development, and increased energy demand from data centers continue to support related investments.On September 14th, the Shanghai Municipal Medical Insurance Bureau, the Shanghai Municipal Health Commission, and the Shanghai Municipal Center for Disease Control and Prevention jointly issued a "Notice on Matters Concerning the Use of Accumulated Balances in the Individual Medical Insurance Accounts of Shanghai Employees to Pay for Non-Immunization Program Vaccines." The notice clarifies that starting September 15, 2026, insured individuals in Shanghai can use accumulated balances in their individual medical insurance accounts to pay for vaccines and injection service fees for non-immunization program vaccines listed in the vaccination catalog administered at designated medical institutions. This also supports family-based medical insurance contributions, further reducing the burden of vaccinations for citizens and contributing to the construction of a healthy Shanghai.On September 14th, UBS precious metals strategist Joni Teves noted in a report that gold investors may have already turned their attention to the situation following the next action by the Federal Reserve. She expects the market to have largely priced in the rate hike and will focus more on other reasons to buy gold, such as its attractiveness as a diversification tool and the continued robust demand from official sectors. She added that India is approaching its peak gold demand season, and investment activity in China also appears to be providing support for the gold market. She believes that gold prices may remain volatile in the short term, but the possibility of further gains by the end of the year is increasing. She pointed out that even if the Fed raises rates in September, gold may still experience a "reflexive pullback," but this will not disrupt the overall recovery trend.At the close of the morning session, most domestic futures contracts fell. On the upside, SC crude oil rose nearly 12%, polysilicon rose nearly 4%, and asphalt, container shipping to Europe, and fuel oil rose more than 3%. On the downside, glass and soda ash fell more than 5%, caustic soda fell nearly 4%, Shanghai tin fell more than 3%, synthetic rubber, No. 20 rubber, and polyvinyl chloride (PVC) fell more than 2%, and rubber fell nearly 2%.Xiyin-W (00625.HK) fell more than 10% to HK$36.04.

USD/CHF Steady at 1.0020 as DXY Pauses, Powell and US Retail Sales Take Center Stage

Daniel Rogers

May 16, 2022 10:46

The USD/CHF pair is bouncing within a small range between 1.0020 and 1.0030 in early Tokyo, as the US dollar index (DXY) is not gaining much traction due to Monday's light economic calendar. Although broad-based fundamentals continue to favor the dollar bulls, the Federal Reserve (Fed) is projected to raise interest rates by another significant number in June in an effort to limit the inflation issue.

 

Last week, Fed's Powell's interview with the national radio show Marketplace revealed the ongoing conversations among Fed policymakers regarding anticipated rate hikes in monetary policies. Fed Powell indicated that the Fed could declare two additional rate hikes in the next two consecutive monetary policy sessions in order to tame the soaring inflation.

 

In the meantime, the US dollar index (DXY) is poised between 104.46 and 104.60 after reaching a new 19-year high of 105.00 on Friday. The DXY appreciates the broader gains but requires further triggers to maintain strong. In the future, two significant events on Tuesday will keep investors occupied. First will be Fed Chairman Powell's speech, which will likely influence monetary policy action in June. The second significant event is the monthly US Retail Sales report, which is anticipated to increase by 0.7% from the previous reading of 0.5%.

 

In terms of the Swiss franc, Friday's Industrial Production data will be the focal point. The catalyst reached 7.3% the previous time. A greater-than-anticipated number will strengthen the Swiss franc against the U.S. dollar. 

USD/CHF

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