Forex news for Asia trading Monday 10 October 2016
- 2nd US Presidential Debate - Fibonacci loses this one
- Morgan Stanley's Weekly Outlook for USD, EUR, CHF, CAD, AUD, NZD
- US Navy ship said to be fired upon off Yemen - not hit
- China's CFETS: No basis for long-term depreciation of the yuan
- Who won the second debate? Trump or Clinton? Cast your votes!
- More on PBOC setting the CNY at its weakest for 6 years
- USD/MXN under 19
- USD/CNY 'fix' above 6.7 (yuan weakest in 6 years)
- Moody's: Australian major banks face rising , manageable commercial real estate risks
- PBOC sets USD/CNY mid-point today at 6.7008
- Clinton - Trump Debate number 2. Here's the handshake
- MXN higher again just ahead of the Clinton - Trump debate
- RBNZ Assistant Governor McDermott to speak tomorrow
- NZ data - ANZ inflation gauge: +0.2% m/m (September)
- Reuters on latest UK business surveys - economy appears to be losing steam
- IMF's Lipton says what Japan really needs is more arrows
- Weekend oil headlines - Iraq wants to pump more, Iran & Iraq not going to Istanbul
- BOJ's Kuroda comments recrossing the wires
- FT: Germany considers changing labour laws to help woo banks away from London
- Weekend interview with Australian Treasurer Morrison - against further RBA cuts
- S&P's "startling warning" on Australian debt
- Mind the gap - MXN edition
- Allright you lot - who among you is engaged in “disgraceful” exchange rate profiteering?
- Monday morning Forex prices, early indications - 10 October 2016
Weekend:
- The endowment effect is one of your worst enemies
- ECB's Constancio says market developments raise increased challenges for future asset purchases
- ECB's Lane says Brexit has adverse implications for both the UK and EU economies
- Fed's Fischer says FOMC's September rate decision was "a close call"
- China can control risks in banking sector even as bad loans increase
- Iraq's oil minister call for increased domestic output in 2017
- Trump further on the back foot after release of lewd remarks
- SNB’s Jordan weekend comments – will cut rates even further ‘if necessary’
- 100,000 followers! Thanks so much for the support
- Draghi: ECB to reach inflation goal at the end of 2018 or early 2019
- Kuroda hints at lower short and long-term rates
- These insights from the "Sultan of Currencies" are still relevant today as they were in 1992
- 99,985. I'm going to bed and won't get out for less than 100,000
- China Caixin Services PMI (Sept.) 52.0 (prior 52.1) & Composite 51.4 (51.8)
- PBOC Governor Zhou comments on the weekend wires
- Japan finmin Aso says he exchanged views with US' Lew on currency matters
- BOJ's Kuroda says G20 understands must use monetary, fiscal & structural
- UK business lobby groups plead for government to avoid "hard Brexit"
- China still pumping in liquidity via MLF route
Opening prices for FX rates saw a few weekend gaps this morning, with CAD, AUD, NZD and most notably MXN all stronger. USD/JPY was higher.
MXN was a focus today after weekend reports of 'lewd' comments from Republican Presidential candidate Trump seemingly damaging his chances further. The rally in MXN continued up until the beginning of the 2nd debate today. It lost ground as the debate got underway, with a better than expected performance from Trump and also the impact of the much higher USD/CNY fix from the PBOC today (more on this to come). And USD/MXN has continued to retrace its losses in the time following the conclusion of the debate (chart via Bloomberg):
A reasonable summary of the debate is that Trump performed better than he had in the first debate, and better than was expected. He did threaten to target Hillary Clinton with jailing if he won, but on the bright side he did back down from threats to have her executed. :-D
Elsewhere it was a light data and news flow session. Japan was closed for a holiday, and with the US out today kept moves subdued. USD/JPY has retraced all of its week opening gain, while AUD and NZD hare backed off from their earlier highs a little also. EUR and CHF traced out small ranges only.
Cable saw selling early in the session, dropping to around 1.2375 before recovering its losses to tick over 1.2440, its since slipped back to around 1.2400.
Gold gained steadily to over 1264 before losing a few dollars back to around 1257. Its managed to gain back to near session highs as I update. Oil prices are down a little from Friday late levels.
China was back from the Golden Week holiday, with a weak fix for the CNY against the USD. USD/CNY was set at its highest since September of 2010 by the People's Bank of China today. The set occurred as the 2nd debate got started in the US. Chinese stocks have a had a strong day; China shares listed in HK had a good week last week, so the move was not entirely unexpected today. They probably could have done better, though.
Regional equities:
- Shanghai +1.25%
- HK -0.42%
- ASX +0.15%
