Forex news for Asia trading Monday 13 April 2020
A quick one only today, mainly to draw attention to the big news of the weekend, the OPEC+ G20 agreement to cut oil output.
Details are still a little sparse and it does appear OPEC and the G20 are overstating the cuts (as well as just plain ignoring the demand destruction impact, which, to be fair, there is not a lot oil producers can do about).
Posts are here (read from the bottom up for the chronology)::
- BNP on the OPEC+ G20 oil output cut - "at best" it establishes a price floor
- Goldman Sachs are unimpressed by the oil output cut deal - "insufficient"
- OPEC+ draft statement says expected total oil output cuts of more than 20m bpd
- Here are the main points so far of the OPEC+ agreement to cut oil output (and the 3 things they missed)
- OPEC+ oil output cut deal agreed Sunday
But, in a nutshell:
- a cut of circa 9.7 million barrels a day of oil across OPEC+ and the G20
13-nation OPEC and others (Russia, US are two) agreed to share cuts
- Its unclear how the cuts are to be apportioned, and how the US intends to enforce its promised cuts
Mexico cut 100,000 barrels a day
US by 300,000 barrels / day
Saudi Arabia's production to be reduced to 8.5m bpd (from the current whopping 12 million bpd)
The oil price opened higher to begin the week, then dropped rapidly into negative, and then spent the following hours rebounding to a fresh high before steadying not to far from the highs.
In other news:
- AUD/JPY a mover (lower) to open the week (see this for info on Minneapolis Fed Head Kashkari warned of 'rolling shut downs' of sectors of the economy in the 18 months ahead as new COVID-19 cases increase and decrease in cycles.
- Coronavirus - US spy agencies raw intelligence hinted at a public health crisis in Wuhan in November 2019
- South Korea reports 25 more cases of coronavirus, lowest in 7 weeks
- The two major data points coming up from Australia this week
- PBOC sets USD/ CNY reference rate for today at 7.0300 (vs. Friday at 7.0354)
- FX option expiries for Monday April 13 at the 10am NY cut
- UK Chancellor Rishi Sunak reportedly spoke of a potential 30% drop in UK GDP
- Coronavirus - UK Prime Minister Boris Johnson is out of hospital!
- Trade ideas thread - Monday 13 April 2020
- Monday morning open levels - indicative forex prices 13 April 2020
- Video: A tour of the ultimate home trading office
- Coronavirus: UK virus deaths near 1000, Spain fatalities slow, US passes Italy
Immediately ahead is a Europe/UK hoiliday for Easter Monday. US markets will be open Monday though.
BoJo is out of hospital!
