China warns the US not to underestimate its resolve on Taiwan
Beijing responds with a warning salvo directed at Biden
This comes after Biden’s remarks in Tokyo.
“No one should underestimate the Chinese people’s firm resolve, staunch will, and strong ability in defending national sovereignty and territorial integrity,” said China’s foreign ministry spokesman.
It’s pretty clear what the message is about and who it’s intended for.
SNB total sight deposits as of 20 May CHF 754.1 billion compared to CHF 753.3 billion previously
Latest data released by the SNB – 23 May 2022 Domestic sight deposits CHF 664.9 billion compared to CHF 666.5 billion previously
There hasn’t been much change in overall sight deposits, but the trend remains fairly consistent. The SNB will remain a constant in FX intervention, and this will undoubtedly continue in order to prevent the floodgates from opening in relation to the Swiss franc.
BOE governor Bailey to speak on monetary policy and inflation later today
Bailey will take part in a panel discussion at 1415 GMT.
He will participate in a panel discussion on “Monetary policy, policy interaction, and inflation in a post-pandemic world with severe geopolitical tensions” at the 35th SUERF Colloquium and 49th OeNB Economic Conference.
According to the agenda, the discussion will begin at 14:15 GMT. Notably, he will be joined by Joachim Nagel, president of the Bundesbank and an ECB policymaker.
Expect no significant remarks from Bailey that will represent a departure from current BOE thinking, but it is worth keeping an eye out just in case.
- The dollar fell last week, retracing some of its gains over the previous two months.
- As the new week begins, the US dollar is the weakest performer. The stronger risk appetite in markets isn’t helping sentiment in the dollar, but technicals point to some retracement after last week’s action. The dollar fell for the first time in seven weeks last week, as other major currencies recovered some ground, with some coming up for air after being beaten down against the dollar.
- Today, the antipodeans are leading the charge, outperforming the greenback by more than 1%.
- The EUR/USD is up 0.4 percent to just above 1.0600, with the next key resistance point set to be the 4 to 5 May highs around 1.0631-42.
- GBP/USD is up 0.6 percent to 1.2570 as buyers extend their break above the 1.2500 level:
- The 4 May high @ 1.2638 will be a key resistance point to watch as the pound gains some breathing room against the dollar for the time being.
- The AUD/USD is seen trading back above 0.7100 and heading for its 38.2 Fib retracement level at 0.7147:
- Elsewhere, the NZD/USD is in a similar situation, with the pair currently up more than 1% to 0.6470:
- The pair also has more breathing room with its own 38.2 Fib retracement level seen @ 0.6529.
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