Forex and Bitcoin news for Asia trading Friday 23 March 2018
I've changed the format for the wrap, just for today, to focus on the yen moves.
But first ... the ugly (US Wednes)day on the trade war-impacted stock markets carried over into Asia Friday. 'Bloodbath' was a popular description (I misspelt that initially and was autocorrected to destruction .... yeah, that too):
- Nikkei -3.32%
- Shanghai -2.72%
- HK -3.26%
- ASX -2.15%
Anyway ... on to FX ... and a focus on yen:
USDJPY was a mover in the hours following the US close, trading under 105.25 and shunting to the down side in the low liquidity period pre-Tokyo open toward 104.60 (lows circa 104.65).
It was hit by trade and political news and unfolded (As I posted earlier):
During Wednesday US time it all began (this as background):
Stock markets took a dive on trade fears
China responded late US time:
China says not afraid of trade war, will defend its interests
Here is the full statement from the Chinese embassy on the trade war
Add some geopolitics into the mix:
And then China got more specific with new tariffs on US goods:
(tariffs on more than steel and aluminium (check the post for more) BUT the Chinese announcement amount to action on around $3bn. Which is a clever first step from China. Responding to US moves on $50bn with just $3bn will be seen as restrained when it is examined around the globe.)
Finally, and to cap the yen's gains (so far for the day, at least) - Japanese inflation data is consolidating small rises:
USD/JPY bottomed around 104.65 and retraced back above 105 but soon lost the handle there again and is ticking down as I post (circa 104.75)
Other news and data on the session:
- Japan chief cabinet secretary Suga: Important to have stable FX rates
- BOJ's Wakatabe: need to consider costs, benefits if BOJ wants to ease further
- PBOC sets USD/ CNY mid-point today at 6.3272 (vs. yesterday at 6.3167)
- BOJ dep gov Wakatabe: BOJ policy is producing results
- Merkel weighs in on tariffs now - EU will retaliate if US raises tariffs
- Japan trade minister: Retaliation could lead to collapse of free trade system
- Japanese inflation data for February: Headline CPI: 1.5% y/y (exp 1.5%)
- Greek PM Tsipras phone call with Putin - gets invited to the Kremlin
- Tusk: EU leaders agree with Britain - highly likely Russia responsible for attack
- Trade ideas thread - Friday 23 March 2018
- Central bank jawboning alert - this one for the krona traders
- JPMorgan working on potential spin-off of main blockchain project
Other currencies had some movement also. On the general fear theme the CHF gained a little, to around 0.9460 (and just under) against the USD. EUR/USD edged up a few points, towards 1.2340. AUD, NZD and CAD all lost a few points against the USD but have recovered them. USD/CAD is net down 20-odd points on the session here.
Gold was a gainer, above 1338 at one stage.
Still to come Friday:
- Calling out the big guns .... BOJ Gov Kuroda to appear in parliament today (from 0545GMT)
- US data due Friday - preview of durable goods for Feb (prelim)
- And, the Friday CPI fun don't be done - preview of Canada Feb inflation due today
- Friday - it ain't over. Preview of January retail sales (Canada) data still to come
- FX option expiries for the 14.00 GMT cut - Friday 23 March 2018
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I wish you all a great weekend!
