Forex news for Asia trading Monday 25 2016
Monday:
- China's debt problem is Asia-wide. Implosion most likely in the next 3 years.
- Japan economy minister Ishihara says the yen was strong, calmer now
- Japan Cabinet office monthly economy report: Moderate recovery, weakness recently
- Australian CPI coming up this week
- Japan June trade balance data "offer hope of recovery"
- PBOC sets USD/CNY mid-point today at 6.6860 (vs. Friday at 6.6669)
- Gold, yen both lower as week begins
- Bloomberg poll: 78% of analysts forecast BOJ will expand easing this week
- Oil - Niger Delta Avengers say they blew up a Nigerian gas pipeline
- Japan June trade balance: Y 692.8bn (expected surplus Y474.4bn)
- BBC report on Germany explosion - Mayor says 'explosive device'
- Bloomberg on what’s wrong with Japan’s economy & how to fix it
- Oil - Libya oil exports threatened as NOC warns against port deal
- Preview of the FOMC meeting this week - expectations
- M&A - Bargain basement Brexit Britain
- Explosion kills one in restaurant in German city
- UK press - biggest companies issue most Q2 profit warnings since GFC
- Trade ideas thread to open the week - Monday 25 July 2016
- Brexit at the G20: Could be more clarity later this year on how to exit
- G20 wrap & full text
- Italy fin min denies Italy’s banks suffering from systemic probs, rejected a “bail-in”
- Monday morning Forex prices, early indications. 25 July 2016
Weekend
- What's expected in the big central bank week ahead - Credit Agricole
- Kuroda: There are different definitions of helicopter money
- G20 pledges to do more for growth and to share benefits more broadly - draft
- 61 killed, 207 wounded in Afghan suicide attack
- Munich attacker wasn't a radical, was interested in shootings
- Fiscal policy to play bigger role post-Brexit - G20 official
- A trading hack to help you trade like George Soros
- German police find body of probable shooter
G20 Finance ministers and central bankers met in China over the weekend. The Communique was not much of a market mover here in Asia on Monday, nothing too much surprising at all from the Group (I posted a G20 wrap & full text here)
There was another attack in Germany, news hitting in the early Monday hours. Its turned out the only fatality was the attacker himself, killed by his own bomb, although there were other people injured.
Other news was the larger than expected trade surplus (June) Japan.
Across FX we had a few small opening moves. USD/JPY traded higher initially, into the Tokyo fix it had popped to around 106.65 before slipping back to early levels & now around 106.35/40. EUR/JPY moved higher alongside and has since stabilised. EUR/USD recovering from lows ahead of 1.0950 to be little changed on the session now around 1.0970. USD/CHF retested its US timezone highs around 0.9895 and has retraced to be around 0.9875 now.
Cable opened with a small bounce from late Friday levels (to a 1.3150+ high briefly) and has since retraced somewhat too, around 1.3120 now.
AUD/USD gained ground in the morning to circa 0.7480 before giving back a few points. NZD was more active; higher early too (above 0.7010) and then a drift back before a sharp stop loss run below 0.6960 and then stabilising somewhat in a nervous range around 0.6980.
Gold dropped early, under USD1314 briefly and just above USD1316 as I update.
The People's Bank of China shoved the CNY weaker following the G20 meeting conclusion, for the sharpest USD/CNY rise since the first week of July.
All in all a nervous but small range start to a big week (FOMC, BOJ and Aussie CPI to come).
Regional equities:
- Nikkei +0.04%
- Shanghai +0.24%
- HK -0.32%
- ASX +0.51%
Still to come this week:
- Australian CPI
- Bloomberg poll: 78% of analysts forecast BOJ will expand easing
- Preview of the FOMC meeting this week - expectations
- What's expected in the big central bank week ahead - Credit Agricole
