Forex news for Asia trading Wednesday 23 October 2019
- Brexit - Citi says uncertainty diminishing, makes the U.K. is "investable again"
- Here are five Brexit options ahead (there are probably more)
- RBNZ's Hawkesby "very happy" with the way rate cuts are feeding through into economy
- CAD, AUD, NZD, GBP, EUR - all to fresh session lows against USD
- The technical analysis folks are eyeing a move under 1.2860 for GBP/USD
- PBOC sets USD/ CNY reference rate for today at 7.0752 (vs. yesterday at 7.0668)
- FX option expiries for Wednesday October 23 at the 10am NY cut
- As Asian markets get active the news HK's CEO may be replaced is attracting interest
- Australia data: Skilled Vacancies for September -0.7% m/m (prev. -0.1%)
- (ICYMI on oil) - Goldman Sachs lowers forecast 2020 U.S. shale oil output growth
- S&P500 … "Could we be in a stealth bear market?"
- Video update on GBP response to the latest on Brexit, and also the Canadian election & CAD response
- Analyst on cheap looking euro - sees EUR/USD toward 1.2 in time
- New Zealand trade balance for September NZD -1242m (vs. expected NZD -1400m)
- Brexit - EU Tusk's recommendation for a Jan 31 extension is a "flextension "
- UK source says only way can move on is with an election if the EU agrees to January Brexit extension
- North Korean dictator says will withdraw South Korean facilities from Mount Kumgang Tourist Region
- Unnamed UK official says a Brexit delay to January 31 means there will be an election
- France says it rules out a further Brexit delay beyond this next one
- Trade ideas thread - Wednesday 23 October 2019
- Private oil data shows a larger than expected build in crude oil inventories
- Brexit - EU's Tusk will recommend EU accept UK request for extension
- French govt minister says cannot wait infinitely for UK to make a Brexit decision
Moves were small only during the session here today but showed a souring of risk sentiment. USD/JPY dropped from around 108.50 towards 108.25 and a move lower was soon seen also in for EUR, AUD, NZD, CAD against the USD. Data flow was barely existent, and it was pretty much the same for market news.
AUD/JPY reflecting the risk mood in currencies:
The Brexit headlines did continue into the UK evening but they were more of a tidying up after the dramatic developments Tuesday in the UK. EU Council President Donald Tusk recommended the 27 states give an extension to the UK, out to January 31 2020 if needed (with an option to exit earlier if the UK can get its act together). France said it was not happy with 'infinite' extensions.
GBP/USD continued to trade in a soft fashion, moving under its Tuesday low but not showing much extension (no pun intended) once that level gave way.
While on the subject of political news, and something that did catch the market's attention today, China is said to be making plans to replace Carrie Lam as Hong Kong chief (see bullets above).
The People's Bank of China took a knife to the onshore yuan today, sending USD/CNY mush higher at the reference rate setting, not helping risk sentiment at all.
