ForexLive Asia FX news: UK’s weekend threat to quit trade talks

Forex news for Asia trading Monday 22 May 2017

S&P has revised ratings, outlooks for many of Australia’s financial institutions
OIL - Could OPEC try to surprise the market by announcing deeper cuts, longer extension?
Tokyo mid-morning FX update .... GBP gap down, (nearly) fills, drops again
People’s Bank of China sets yuan reference rate at 6.8673 (vs. Friday at 6.8786)
BOJ JGB buying operation in same amounts as before
More on Japan April trade balance - encouraging sign ... more robust overseas demand
Weekend WSJ: Worries rolling back Fed’s b/s (& more) markets risks disruption
Weekend: Blackstone, Saudi Arabia SWF plan $40bn infrastructure investment (guess where)
Japan - Trade Balance (April): ¥ 481.7bn (vs. expected ¥ 520.7B)
Japan press survey on wages ... lower payments
UK - Rightmove house prices (May): +3% y/y (vs. expected +2%)
Greece bailout review - EU finance ministry deputies to meet Monday
US politics - James Comey to speak informally with Jason Chaffetz on Monday
German Finance Ministry monthly report - economic growth to continue, but slower
Weekend Brexit news - "UK threatens to quit Brexit talks if it faces massive bill"
Nth Korean State media says missile test fire puts Hawaii and Alaska within range
Weekend oil - OPEC heads towards supply cut extension
Goldman Sachs on US politics: Trump investigation & what it means for fiscal policy
German Foreign Minister Gabriel says he wants debt relief for Greece
Couple of UK election polls from the weekend
Trade ideas thread - Monday May 22, 2017
Economic data due from Asia Monday 22 May 2017
Weekend news from North Korea - fires a mid-range missile near Pyongyang
Monday morning Forex prices, early indications - 22 May 2017

Weekend:

What's on the economic calendar to start the week
China dismantled the CIA's spying network and American authorities don't know how
A couple of forex-related job postings
The top performing currency last week will probably surprise you
Trump calls to honestly confront the crisis of Islamist extremism
Sunday funnies: I think this cartoon is about markets
More Weidmann: "indisputable that an expansive monetary policy is appropriate"
"Safe haven". "Flight to safety". Heard these? Why JPY and CHF fit the bill
Iran's Rouhani pledges freedoms and openness after election
Germany already pushing for Weidmann to take over ECB after Draghi
Why was Bank of England Governor Mark Carney was at the White House Friday?

ICYMI:

ForexLive Americas FX news wrap: The euro cracks 1.12

GBP gapped lower in the very early session here, bounced to cover much of the hole, but fell away again. Selling was on option-related interest combined with UK threats to quit trade talks with the EU over the €100bn 'divorce bill'. (Note, formal Brexit talks are scheduled to begin June 19).

USD/JPY, too, had an active session, lower to begin the early pricing for the week (North Korea fired another missile over the weekend which was cited for the early yen strength) but it was soon undone. USD/JPY tracked higher throughout the Tokyo morning despite decent export data. One thing to note on the data was a declining trade surplus with the US on the month (I make no comment on rubbery accounting :-D ) which would tend to reduce pressure on Japan from the US administration and perhaps was a yen negative. Whatever the reason for the move (buying > selling anyone?) USD/JPY found a lid around its US Friday's high circa 111.60.

EUR and CHF were both slightly softer against the USD for the session, but both remained in subdued ranges.

AUD and NZD, too, both in small ranges. NZD is slightly higher, AUD slightly lower. S&P revised ratings & outlooks for many of Australia's financial institutions, with 23 downgraded. There was no action on the 'big 4'. The agency cited concerns over high levels of private sector debt & high house prices, echoing RBA remarks made recently (Well, beginning a good few months ago, and noted (over and over) on FXL ... it actually seems to have taken S&P a good while to catch on).

Gold is lower on the session. Weekend remarks from Saudi Arabia (and elsewhere) seem to have further cemented the extension of oil production cuts (out to March 2018 it would appear) and gave oil prices a boost here to open the week.

Regional equities: