Forex news for Asia trading Monday 10 July 2017
- Japan Government Bond yields: 5yr rises to its highest since January of 2016
- London Metal Exchange to offer gold, silver contracts for first time in decades
- French govmt wants to be more "finance-friendly", attract Brexit-fleeing banks from London
- OIL - Qatar long-term contracts in the gas and oil sectors not seeing any disruptions
- WSJ: Weak inflation raises questions about traditional model linking output and prices
- Gold - India’s H1 2017 imports have already passed 2016 totals
- ANZ on USD/JPY: US 10yr yields to stall, limit USD/JPY gain around 115
- ANZ on CFTC data - Leveraged funds were net sellers of USD for the seventh straight week
- M5.5 earthquake strikes 120 km NE of Cebu City in Philippines
- Forecasts for the NZD (for the week, month and quarter ahead)
- China CPI (June) 1.5% y/y (vs. expected 1.6%) and PPI 5.5% y/y (expected 5.5%)
- Still awaiting China inflation data (June) - was due at 0130GMT
- People’s Bank of China sets yuan reference rate at 6.7964 (vs. Friday's at 6.7914)
- USD/JPY testing Friday's high
- BOJ's Kuroda: Will keep YCC for as long as needed, will adjust as required
- Reuters on Brexit: Big UK firms curtail investment plans, consumer slowdown deepens
- PIMCO's Fels: Turndown in US inflation likely to last
- Fed's Kashkari in the WSJ: Large banks need more in equity
- Japan May Machinery Orders -3.6% m/m (expected +1.7%)
- Japan BoP Current Account Balance (May) ¥ 1653.9bn (vs. expected ¥ 1792.8bn)
- Japan data due at 2350GMT, but first: Abe's cabinet approval rate lowest ever
- (W/e) More from Cœuré: Euro zone growth picking up, underlying inflation still weak
- ECB's Villeroy wants Germany to loosen its fiscal policy
- Former RBA board member Edwards says wage growth looks to have bottomed
- Singapore's sovereign wealth fund says it has reduced exposure to riskier assets
- Economic data due from Asia today (BOJ Gov Kuroda speaking)
- Forexlive Weekend FX news wrap!
- Cable says Brexit may never happen
- Trade ideas thread - Monday 10 July 2017
- Australia press - Australian steel, aluminium to be exempt from US import tariffs
- (W/e - OIL) OPEC July meeting (monitors) will not discuss possibility of further cuts
- (W/e - OIL) Citi analyst says oil could hit $60 by end-2017
- (W/e) Head of China's SAFE says no intention of devaluing the yuan
- (W/e) ECB's Cœuré: French government's budget pledge good for France & euro zone
- (W/e) French finance minister says the country can cut taxes & public spending at the same time
- EU, Canada agree start of free trade agreement
- Here's the G20 Communique, with a rare public admission of disagreement
- (W/e) ECB's Knot warns the Bank is close to too much QE
- (W/e) ECB's Praet says reflation remains highly dependent on loose monetary policy
- Monday morning forex prices, early indications: 10 July 2017
Weekend:
- US Senator John McCain says Senate Republican healthcare bill probably dead
- What happens after the Bank of Canada hikes rates
- Former Conservative cabinet minister: Theresa May must go
- Priebus says his 'guess' is that the US imposes steel tariffs
- Villeroy says ECB likely to wait until the Fall to take next step
- A pivotal time for risk markets; what's the trade? - Nomura
- Two weeks in a row at the top spot for the Canadian dollar
- 'Bottom line' from Morgan Stanley is for USD/JPY higher; AUD, NZD lower
Blast from the past:
There was not a lot to move markets in a plentiful supply of weekend news (what with the G20 especially) and as such Monday Asia moves remained quite refrained.
As the morning progressed we got japanese data, with a bad miss for machinery orders pointing to a likely drop off in capex to come, which is not a positive sign for the economy. A speech from Bank of Japan Governor Kuroda followed, with no change in tone from the Gov. Beatings QQE will continue until morale inflation improves.
The People's Bank of China set the USD/CNY midrate today at a strengthening for the yuan, its first in 6 days, and a 12 successive day with no open market operations (and in effect another drain of liquidity). China June inflation data came soon after, fairly steady change from May's results and little in the way of policy implications (China is focused on efforts to deleverage while also stabilising growth ahead of the Congress in a couple of months time - inflation appears likely to remain below target).
Currencies were subdued. The yen weakened, with USD/JPY testing its Friday (US time) highs around 114.20, up 30 or so points on the day. The slip in yen was reflected in higher yen crosses.
EUR & CHF are barely changed against the USD on the session, although GBP and AUD have both eked out minor gains (very minor). NZD/USD is little changed while USD/CD is up a hair from late Friday levels (not much in it). Oil is a few cents to the better on the session while gold is off a few cents.
Regional equities:
- Nikkei +0.90%
- Shanghai -0.21%
- HK +1.03%
- ASX +0.60%
