Forex news for Asia trading Thursday 2 November 2017
- "ECB “patience” to see euro fall further" (to 1.1!)
- US President Trump tweeting a teaser on the Fed announcement tomorrow
- The truth about the 10 Biggest Brexit Myths
- US President Trump will announce his choice for Fed chair at 3pm NY time Thursday
- GBP/USD: Balance of risks into the Bank of England MPC today
- Australian trade balance - more responses coming in
- US is concerned about trade imbalance with Indonesia
- Update to the USD - has weakened further (not large movement)
- More on that 'ECB to postpone publication of stress test results'
- Australia building approvals - responses coming in
- Australian trade balance - responses coming in
- PBOC sets USD/CNY mid-point today at 6.6196
- FX options for Thursday expiry (2 November 2017)
- FT says "Powell as Fed pick may not be the non-event it seems"
- Australia September building permits: +1.5% m/m (expected -1.0%)
- Australia - September trade balance: AUD surplus 1.745bn (expected surplus AUD 1.2bn)
- Abe's high praise for Kuroda (man-crush or a prelude to reappointment?)
- More US tax rumours etc crossing (repatriation rates)
- Bank of England decision preview and three main scenarios
- Preview of the BoE monetary policy decision - & the impact on GBP
- Here we go again: "Powell said to be Trump's Fed chair pick"
- Australian trade balance data due today - more preview
- ECB said to postpone publication of stress test results
- Australia building approvals data due today - preview
- Australian trade balance data due today - preview of the big surplus!
- Trade ideas thread - Thursday 2 November 2017
- US Brady says permanent corp tax cut could require "several steps" to achieve
- Economic data due from Asia today
- BoC Poloz remarks now on CAD - what influences movement
- NZ data - ANZ job ads for October +0.9% m/m (prior +0.4%)
Pretty much across the board USD weakness in Asia today, concerns over the US tax bill seemingly the main catalyst for the selling. There was further talk that Powell would be Trump's nomination as the new Fed head, not new chatter but there was more of it.
On the US tax bill - the concern is that the corporate tax cut would be 'temporary' (to be phased out over a 10 - year period). I am not sure when spot FX dealers became tax accountants and lawyers, but there you go. Still, it was enough to flush a few longs.
USD/JPY highs on the session were just over 114.20, the drop took it to cicra 113.75.
EUR/USD, meanwhile, made up some ground, from lows just under 1.1615 it moved briefly above 1.1670 before slipping back 20 or so points. Cable has gained on the session - a Bank of England rate hike is the expectation today. USD/CHF traded lower.
AUD/USD is higher on the day, it surged on twin economic data point beats - a bigger than expected trade surplus and better building approvals (both for September). NZD/USD was not to be left behind today either, its gained 50+ points also.
USD/CAD went along for the slide and gold is higher against the USD too.
Still to come - Bank of England announcement (and more - its Super Thursday again!)
- Bank of England decision preview and three main scenarios (SG)
- Preview of the BoE monetary policy decision - & the impact on GBP (Barclays)
- Bank of England meet November 2 - preview (once in a decade hike) (RBC)
- GBP/USD: Balance of risks into the Bank of England MPC today
And, from the US:
- 11.15am NY time House Republicans to unveil tax reform bill
- US President Trump will announce his choice for Fed chair at 3pm NY time
