You know the story by now, a huge surge for the yen at the THE most illiquid time of the 24 hour FX cycle. If you are just tuning in though, this is what you missed (chronology is from the bottom up)
As late as early December Goldman Sachs were predicting four Federal Open Market Committee (FOMC) interest rate rises in 2019 Only a few weeks ago they cut that projection to three. Economists at the bank have now cut the forecast even further, to just 1 for all of next year. (OK, they have cut it…
Comments by ECB member Klaas Knot European Parliament elections in May could play a big part Apart from Draghi’s post, Peter Praet will also be vacating his position as ECB chief economist after May next year. So, those are the two “ECB jobs” being mentioned here by Knot.
Further comments by ECB member Klaas Knot – No reason to expect more than a little slowing of growth – QE remains in the toolbox, but only for extreme circumstances ForexLive
ECB executive board member, Sabine Lautenschlaeger, spoke in an interview with Deustchlandfunk radio over the weekend – Hopes and expects that there will be a rate change in 2019 ForexLive
In a new development for 2019 each Federal Open Market Committee (FOMC) meeting is to be followed by a news conference from Chair Jerome Powell. The dates, to print out and stick on the fridge:
Comments from a former PBOC Monetary Policy Committee member Yu Yongding – most pressing issue is to halt the further decline in economic growth – by adopting expansionary fiscal policy and moderately loose monetary policy
There was no central rate set on Monday nor Tuesday this week, both were holidays in China. So that previous in the headline is the mid-rate is from Friday Dec 28.
Chair of the Federal Reserve Jerome Powell is speaking on 4 January 2019 – It will be in the format of a joint interview (with the New York Times’ senior economics correspondent) Due at 1515GMT on 4 January
People’s Bank of China onshore yuan reference rate In Open Market operations – PBOC injects 40bn yuan via 7-day reverse repos – PBOC injects 20bn yuan via 14-day reverse repos 150bn yuan in RRs mature today, thus a net 90bn yuan drain