**Japan’s Yen Updates:**
- Japan is monitoring speculative currency moves.
- Comments on yen intervention have emerged from Japan.
**China News:**
- PBOC plans to cut the 7-day reverse repo rate by 0.2%.
- PBOC increases support for the stock market with a new relending facility.
- Positive change in Chinese economic indicators reported by NBS official.
- PBOC Governor outlines guidance for stock buybacks.
- September retail sales in China rose 3.2% y/y (expectation was +2.5%), industrial production +5.4% y/y (expectation was +4.6%).
- China’s Q3 GDP grew 4.6% y/y (slightly above expected +4.5%), but q/q growth was 0.9% (slightly below expected 1.0%).
- New house prices in China dropped 5.7% y/y in September (previously -5.3%).
- PBOC sets today’s USD/CNY reference rate at 7.1274 (previous estimate was 7.1267).
- PBOC emphasizes the need to support the real economy.
**Other Updates:**
- US politics: “Big Jack Smith document dump” expected Friday – Trump sought to delay this.
- China’s banks have lowered fixed deposit rates by 25 basis points, as confirmed.
- Japan’s September CPI matched expectations at +2.5% y/y.
- Japan’s CPI data will be released at 2330 GMT / 2230 US Eastern time.
- NAB forecasts a Reserve Bank of Australia rate cut at their first meeting in 2025.
- Trump tariffs could negatively impact the Midwest and South states.
- UBS anticipates more European Central Bank rate cuts in December and 2025, sees support for the Euro.
- RBC expects a series of rate cuts from the European Central Bank in the next six months.
- TD on the European Central Bank: no major surprises, now pessimistic on the Euro.
- North Korean leader Kim Jong Un labels South Korea as hostile.
- MIT’s AI Summit names OriginTrail as the best decentralized AI project.
- Deutsche Bank expects quicker rate cuts from the European Central Bank.
- IMF warns that China needs reforms to avoid ‘trouble’ and ‘failure.’
- US Treasury Secretary Yellen warns Trump’s proposed tariffs could spike inflation.
- Forexlive reports US retail sales exceed estimates, while ECB cuts rates.
- Major US stock indices had a mixed close, with S&P and NASDAQ giving up gains.
- Trade ideas thread: Friday, October 18 includes insightful charts and analysis.
**Summary:** We’re starting with Japan’s yen updates before moving to China. Japan’s inflation data for September showed growth above the 2% target, but not significantly impacting the yen, which hovers around 150. Notably, Japan’s Vice Finance Minister commented on rapid and excessive currency volatility. Meanwhile, in China, new economic data shows unexpected growth, leading to increased support from the PBOC. Despite this, major markets remained stable.
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