Forex news for Asia trading Monday 26 June 2017
- AUD, GBP the best of a sorry bunch just past midday Tokyo - update
- Westpac on the Australian dollar: approaching upper end of fair value range
- UBS on iron ore - "Bearish for the AUD? No"
- Goldman Sachs says the risk of US recession has risen but remains moderate
- People’s Bank of China sets yuan reference rate at 6.8220 (vs. yesterday at 6.8238)
- Coming up from Japan this week - focus on inflation
- Japan data - services PPI (May) 0.7% y/y (vs. expected 0.7%)
- BOJ: Increasing number of firms raising wages, significant for higher inflation
- Video - Theresa May and the Holy Grail
- Global economy - what's coming up this week?
- Weekend BIS report: "One of its most upbeat ... for years"
- ICYMI - The agenda for Asia today & which Asian centres are on holiday
- The day & week ahead in Australia - bank view (3) on what to watch for the AUD
- The day & week ahead in Australia - bank view (2) what to watch for the AUD
- The day & week ahead in Australia - bank view (1) on what to watch for the AUD
- GBP/USD technical analysis: 'Expected to head towards the potential at 1.25'
- Japan press - Takata expected to file for bankruptcy protection in Tokyo
- 100 Italian towns & cities voted Sunday (for mayors) - centre-right performed strongly
- Morgan Stanley's view on the EUR 'Waiting on the dip to buy'
- Trade ideas thread - Monday 26 June 2017
- Weekend: Buba's Weidmann comments on conditions for exit from easy policies
- Weekend - Italy shutting two banks at a cost to state of around EUR17bn
- Economic data due from Asia today - BOJ, and then Federal Reserve speech later!
- Monday morning FX - 26 June 2017 - foreign exchange prices, early indications
Weekend:
- Turkey rejects Saudi ultimatum to close Turkish military base in Qatar
- President Trump spent some time on Twitter on the weekend
- Here was the G10 currency scorecard last week
- UBS asks "Where is value in G10 FX?" Says "EUR looks quite cheap ..."
- The Saudi 13-part ultimatum to Qatar is insane
ICYMI from Friday:
- ForexLive Americas FX news wrap: Canada inflation misses the mark
News and data flow was light in Asia today and fairly so over the weekend also. The focus here was on the extra information from the Bank of Japan meeting of June 15 and 16 with the Bank's publishing of its 'Summary of Opinions' for its discussion. The 'Summary' made clear that there are no thoughts of 'tapering' on the BOJ monetary policy board, its full steam ahead for accommodative policy in Japan with the Bank's inflation target still well in the distance despite better signs of growth.
The yen responded with a slight weakening; USD/JPY up 10 to 15 points or so from early levels. EUR and CHF were both contained in small and quiet ranges. USD/CAD and NZD/USD are little net changed on the day.
AUD and GBP both had decent gains against the USD, AUD/USD up to test above 0.7580, where it has encountered some resistance while cable has stabilised somewhat to be just under it session high (circa 1.2750) as I post.
Gold added a dollar or so in early trade but has given it away and more to be around $3 off its session high as I update. A lacklustre range there also.
Oil has ticked a few cents higher in opening trade for the week within a small range also.
In China the People's Bank of China did not conduct OMO's again today (there were none on Friday); maturities meant a net drain of 50bn yuan from money markets - the Bank was content with what it says is relatively good liquidity today, helped by government spending.
Singapore was on holiday today - they're back tomorrow.
Regional equities:
- Nikkei +0.12%
- Shanghai +0.64%
- HK +0.38%
- ASX +0.20%
ps. Don't miss this (especially if you are a fan of Monty Python: Video - Theresa May and the Holy Grail)
