ForexLive Asia-Pacific FX news wrap: Fed’s Schmid and Daly diverged

• Federal Reserve Bank of Philadelphia President Patrick Harker speaks on Tuesday
• European Central Bank President Lagarde speaks twice on Tuesday, Lane *2 also
• Bank of England Governor Andrew Bailey speaking Tuesday, Greene and Breeden also
• Japan government Aoki says no comment on FX moves
• China’s $120bn effort to prop up the yuan
• ICYMI – Saudi Aramco CEO is bullish on China’s oil consumption
• Eurozone Rate Cuts Forecast: Franklin Templeton
• PBOC sets USD/ CNY reference rate for today at 7.1223 (vs. estimate at 7.1229)
• Where are the yen intervention comments?
• China’s Loan Prime Rate (LPR) cuts on Monday – is the glass half full, or half empty?
• ECB Rate Cut Impact Analysis: Inflation Concerns Forward, Policy Tightening Ahead
• Eyes and ears open today – “Verbal intervention threat rises as USD/JPY rises above 150”
• Fed’s Daly says the recent rate cut was a ‘close call’
• Fidelity International (fund manager) cuts 500 jobs in China
• US stock market, the party is over say Goldman Sachs
• UBS say the US election result may not be known for more than a month after November 5
• New Zealand September exports higher than August, imports down a touch
• Fed’s Schmid: Very strong commitment at the Fed for 2% inflation
• Forexlive Americas FX news wrap 21 Oct; The 10 year yield moves above 200 day MA
• Fed’s Schmid calls for cautious, gradual, deliberate approach to rate cuts
• Apollo’s Slok says increasing chance Fed rates hold in November – 10 tailwinds for economy
• Trade ideas thread – Tuesday, 22 October, insightful charts, technical analysis, ideas

We
had Federal Reserve officials Schmid (Federal Reserve Bank of Kansas
City President) and Daly (Federal Reserve Bank of San Francisco
President) speaking in early Asia time on Tuesday. They followed
Logan (Dallas) and Kashkari (Minneapolis) who spoke on Monday, US
time.

All
four expressed support for further Federal
Reserve interest-rate
cuts, but while Schmid, Logan and Kashkari tilted towards going slow
on rate cuts (‘modest’, ‘gradual’, ‘avoid outsize moves’),
citing the strong US economy and an uncertain outlook, Daly was more
gung-ho, saying her perception is that current Fed monetary policy is
“very tight” and that a strong economy should not prevent
pacy rate cuts as long as inflation continues to fall.

Apart
from Fed speakers there was little news nor data of impact. We did
have some (very mild) verbal intervention from Japanese authorities.
USD/JPY is barely off its session highs. Major
FX was otherwise subdued.

China’s
trade weighted yuan basket rose to its highest since July 11.

Gold
jumped on the session but has not approached its recent (record)
high.

This article was written by Eamonn Sheridan at www.forexlive.com.