Morning Call Script - 01 Nov 2023
Overnight asset drivers & the impending data calendar
What’s Moved Overnight
Japan's top ccy official Kanda said he's ready to intervene ("we're on standby") as JGB 10s traded 97bps and USDJPY 151.30. This placed a short-term cap on USDJPY after a 1.7% rally yesterday to 151.74, Yen's largest sell off since April. The BoJ announced an emergency bond purchase operation to steam the tide, as yields hit their widest levels since 2013.
From the US, yesterday's ECI was a reminder of the strength of the US labour market and that JPow's job is not yet done. Heading into today's Treasury refunding announcement and this evening's Fed, US fixed income remains off YTD wides ... 2s @ 5.08%, 5s @ 4.83%, 10s @ 4.91%...
China's Caixin Mfg PMI print of 49.5 vs est 50.8 had limited impact on FX .... EUR 1.0570, GBP 1.2140 and AUD 0.6340 whilst Nikkei was +2.5% and China stocks flat to small positive.
Energy complex is consolidating this weeks 4 to 5% slide... Crude $81 and Brent $85
Finally, Bloomberg reporting, Biden, Xi to Meet at APEC Sidelines in San Francisco in November
Have a great day, and keep smiling!
Podcast for the Commute
The Rest is Politics - The Left and Israel
The Day Ahead
SEK (07:30): PMI
GBP (09:30): UK Oct PMI
USD (12:15): ADP
CHF (12:40): SNB Jordan Speech
CAD (13:30): PMI
USD (13:45): PMI
USD (14:00): ISM Manufacturing PMI
USD (14:00): JOLTs
USD (18:00): Fed
USD (18:30): Powell’s Press Conf
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