Forex news for Asia trading for Wednesday 14 October 2020
- Forecast for EUR/USD to 1.16 (3 month time horizon)
- More from Fed's Daly - it remains to be seen if more Fed action will be needed
- More from RBNZ's Hawkesby
- US election poll compilation has Biden firmly in front
- China President Xi Jinping to speak soon on policy for Shenzhen (& maybe HK)
- RBNZ's Hawkesby says some economic data are surprising to the upside
- PBOC sets USD/ CNY reference rate for today at 6.7473
- FX option expiries for Wednesday October 14 at the 10am NY cut
- UK coronavirus - rumours of a circuit breaker lockdown announcement accelerating
- Fed's Daly reaffirms very loose FOMC monetary policy
- SGD has strengthened a little after the Monetary Authority of Singapore statement earlier
- South Korea's central bank leaves its key interest rate unchanged
- Singapore Q3 GDP -7% y/y (vs. -6.8% expected)
- Monetary Authority of Singapore leaves currency policy unchanged
- Saudi Salman, Russia Putin agree on call to urge OPEC+ to stick to output cuts
- Australia - Westpac Consumer Confidence Index for October: +11.9% m/m (prior +18%)
- World Bank has approved $12bn for DM countries to buy, distribute COVID-19 vaccines
- Australian Treasurer Frydenberg says relationship with China challenging at times
- Heads up for the 'other' election - New Zealand heads to the polls this weekend
- Lastest polling in West Virginia shows Trump way in front of Biden, but there's a but
- Coronavirus - UK media again reports a 2 week lockdown is not ruled out
- The Boris Brexit deadline, are we there yet?
- Japan government official says must swiftly revise laws to allow the BOJ to issue a digital currency
- Trade ideas thread - Wednesday 14 October 2020
- JPM on yield as a driver of yen appreciation
- The Netherlands heads back into lockdown - says "No" to drugs (from 8pm - 7am)
- Four day up streak is snapped in US equities
AUD, NZD and CAD are all slightly net higher in a session with little news nor data of much impact. Despite its rise the New Zealand dollar had a small dip after comments from RBNZ Assistant Governor Hawkesby on the Bank's outlook for the economy (some better indicators but downside risks) and policy (not backing away from the promise of negative rates).
Speculation on a nationwide lockdown in the UK heightened, with rumours Northern Ireland will be announcing a 'circuit breaker' lockdown of four weeks on Wednesday morning (Belfast time). Media reports cited unnamed officials as assessing the probability of Boris Johnson announcing a nationwide lockdown for the UK for two weeks at 80%. GBP/USD has barely budged for the day here.
EUR/USD, too, is little changed while USD/JPY has fallen on the session by circa 15 points.
San Francisco Fed President Daly spoke, indicating yet again Fed easy policy is here to stay for a good while.
The People's Bank of China strengthened the yuan today at the mid rate setting.
