Forex news for Asia trading Friday 13 March 2020
- China's NDRC says to implement measures to boost consumption
- Canada's Sophie Trudeau (wife of the Prime Minister) has tested positive for coronavirus
- Japan's MoF, FSA and BOJ will hold a 3 way meeting today
- PBOC sets USD/ CNY reference rate for today at 7.0033
- FX option expiries for Friday March 13 at the 10am NY cut
- South Korea reports 110 more cases of coronavirus, confirms 1 more death
- Hockey Canada shuts down all games
- US House Leader Pelosi says near agreement on coronavirus package
- Currency intervention suspected
- BOJ unscheduled injection of liquidity, to buy 500bn yen of repos
- EU's Centeno says he expects finance ministers to agree fiscal measures “much larger” than €27bn
- Korean exchange halted (for 20 minutes) on circuit breaker
- Coronavirus - Disney to shut theme parks in Florida and Paris
- Japan senior MoF official says US stock fall may be due to disappointment over Trump's economic and fiscal policies
- China has shut down Mt Everest climb due to coronavirus concerns
- Coronavirus - Australia / New Zealand cricket series to go ahead, but no spectators allowed
- Coronavirus - JP Morgan's US recession forecast, despite 500bn in stimulus spending assumed
- New Zealand, February BusinessNZ manufacturing PMI 53.2 (vs. prior 49.8)
- Coronavirus - New York City Mayor Bill de Blasio declared a state of emergency
- Coronavirus - NZ PM says no community transmission in NZ
- Coronavirus - Australian F1 Grand Prix has been cancelled
- More on the US airstrikes in Iraq on Iranian-backed militia
- Coronavirus - Apple has reopened all of its 42 stores in China
- Coronavirus - UK PM Johnson says "many more families are going to lose loved ones"
- Canadian finance minister Morneau - to use fiscal strength to ensure economy strong
- Italian market regulator introducing short-selling ban on some stocks
- Breaking - US Federal government coronavirus relief package has been delayed
- Coronavirus - Trump administration moving ahead with plan to kick 700,00 off food stamp program
- Ohio health official estimates 100,000 people in state have coronavirus
- Video: Why more coronavirus black swans are coming
- White House confirms there is no Coronavirus Task Force briefing today.
- Coronavirus - A charter flight carrying nine-member Chinese aid team & medical supplies has arrived in Rome
- Coronavirus - German police are now conducting border control checks at border with France
- Goldman Sachs expect the Federal Reserve to cut 100bp on March 18
- Trade ideas thread - Friday 13 March 2020
- March Madness is cancelled
- Bank of Canada announces term repo operations
- German leader Merkel says situation is more extraordinary than the banking crisis
After the stock market crash extended into Thursday in the US regional equities opened lower here in Asia, of course. Developments in the US were again not positive into Thursday evening there; while the US House works to approve relief legislation with the administration the Senate is not doing so, taking Friday off and thus postponing any moves until next week. Markets saw limit down moves on some equity index futures when circuit breakers kicked in.
There were moves from authorities to calm markets, South Korea intervened to support the won while the BOJ offered a liquidity injection (as I post its been curiosuly more or less ignored).
Still to come from Japan is a 3 way meeting of the Ministry of Finance, Bank of Japan and Financial Services Agency. These 3 meet during times of heightened volatility. A briefing will come after the meeting.
Crypto joined the party, bitcoin started its fall during US time, turned into a collapse, and that continued to under 4000 USD at one stage.
Across major FX it was not calm but moves were dwarfed by those elsewhere. Net for the session USD/JPY has gained. In the early part it traded to near 104.50 but has since managed a 75 opr so point bounce. EUR/USD is barely net changed on the session. AUD and NZD, after sad overnight sessions have recovered somewhat, AUD/USD up nearly a big figure from its overnight low. USD/CAD has maintained its late US time strength.
Gold dribbled lower again, not breaking 1550USD though.
All of these moves are taking place on reduced market liquidity.
In other events the US launched airstrikes against Iranian backed militias in Iraq
Friday in the US will bring continued talks between US House of Reps leader Pelosi and US Treasury Secretary Mnuchin on coronavirus releif, but as I said above, any agreement reached will not go to the Senate until next week at the earliest.
Canadian PM Trudeau will go into isolation for 14 days after his wife Sophie tested positive for COVID-19.
