Forex news for Asia trading Tuesday 26 February 2019
- Reuters on Japan stocks - Nikkei dips on selling ahead of fiscal year-end
- Skirmish continues between India and Pakistan - artillery exchanges
- Reports of Indian Air Force striking targets inside Pakistan
- More on Fed's Clarida & recap
- China's state planner says infrastructure investment growth still under pressure
- PBOC sets USD/ CNY central rate at 6.6952 (vs. yesterday at 6.7131)
- US dollar a dirty shirt but are there any cleaner ones says analyst
- UK press: UK govmt planning to pay billions to Brussels - even in event of no-deal Brexit
- BOJ Gov Kuroda: China's economy has been slowing
- RBNZ's Bascand says the bank's plan on bank capital could lower govt borrowing costs
- Fitch says Australian mortgage arrears stable in Q4 of 2018
- More from Fed's Clarida: Fed can afford to be patient
- SEC asks judge to hold Tesla's Musk in contempt for violating agreement
- Analyst says the risks for the USD are “asymmetrically skewed to the downside”
- Fed's Clarida says the US economy is in a good spot
- Goldman Sachs EUR/USD chart - "in an increasingly narrow range"
- Australian data: ANZ Roy Morgan weekly Consumer Confidence Index 114.1 (prior 115.2)
- UK press reports PM May to propose formally ruling out a no deal Brexit
- UK PM May reported to be considering plan to postpone Brexit
- Yellen says US economy “is doing well”, Trump doesn’t understand the Fed.
- Politico report Trump to EU: Play ball or ‘we’re going to tariff the hell out of you’
- Trade ideas thread (people's vote edition) Tuesday 26 February 2019
- US Ag Sec says US will not be 'bought off' by Chinese agricultural purchases
The news of impact on Brexit developments hit in early Asia, that UK Prime Minister May was considering a plan to postpone Brexit. More news followed shortly thereafter, that PM May was preparing to rule out a ' no deal' Brexit. The news was treated by the market as credible (of course, this could be confounded in the hours ahead) and GBP was taken higher. The up move consolidated with further gains through the session here although the range has not been a large one. As March 29 approaches and options narrow, solutions (albeit perhaps short term ones) are coming into sharper focus.
The other mover on the session was the yen, USD/JPY has slid back under 111 as low as circa 110.75. Some geopolitical tensions may have played a role here. The Indian Air force claimed they precision bombed a terrorist camp inside Pakistani territory. Pakistan claims India was chased out of its airspace and the aircraft dropped payload at random while making an ignominious escape. I'm sure the truth will out but I'm going with version 1 for now. We await developments (and hopefully not escalation).
EUR/USD has traded little more than a 1.1355/65 range. AUD/USD is a touch softer on the session after a range of little more. NZD/USD is not much changed either, USD/CAD ditto.
Gold added a few dollars in a circa 3USD range. North Korean leader Kim Jong-Un arrived in Vietnam for his meeting with US President Trump in coming days. The PBOC set the onshore yuan stronger again today.
Still to come:
The big event ahead is Fed Chair Powell testifying before Congress, day one of a two-day performance. Today its before the Senate Banking Committee, and on Wednesday before the House Financial Services Committee.
