The market continues to gingerly ignore the accelerating currency devaluation in China, where the yuan is headed for a record eight weeks of declines. Italian bond yields spike ahead of an important meeting and payrolls are on deck.
"The vast majority of responses in our poll for tomorrow's NFP number are 175k-200k. Also keep an eye on the wage number - anything over +0.3% will raise some eyebrows." - David Rosenberg
Mike Pompeo was livid earlier this week when he said that the IMF should not provide Pakistan with new funding "to bail out China". Well, he doesn't have to worry: China has decided to bail out Pakistan itself.
"Today's operation brings the BOJ a step closer to financing fiscal deficits even though the central bank doesn’t directly buy bonds from the government."
"...the items below represented what I consider to be the most identifiable 95 signposts on our mid-summer’s journey to either making America Great Again or into a neo-Orwellian hell on earth."
"As true as it is that differences of opinion are what 'makes markets', I find the avalanche of analysts arguing for an imminent move lower in the dollar confounding. "
Today at 2pm, the Fed will announce its rate decision: no change in policy is expected, nor a fresh summary of economic projections so the only focus will be on cosmetic changes to the statement.
"U.S. pressure and blackmail won’t have an effect. If the United States takes further escalatory steps, China will inevitably take countermeasures and we will resolutely protect our legitimate right."
A new month begins on the back foot after a fresh escalation in the US-China trade war, more PBOC intervention to calm markets, a Japanese bond rout as the BOJ did not intervene to calm markets, and a Fed meeting.
