Forex news for Asia trading Monday 27 June 2016
(for a chart of earlier price movements in GBP/USD, here)
Monday:
- China's Premier Li: Global trade growth is weak
- Goldman Sachs cuts GDP forecasts in wake of Brexit vote
- Japan spokesman: Government and BOJ to hold more talks if needed
- Don't Buy EUR/USD At Current Levels - Credit Agricole
- More on that China 6.6% 2016 GDP projection
- China Industrial profits for May: +3.7% y/y (prior was +4.2%)
- People’s Bank of China sets yuan reference rate at 6.6375 (vs. Friday at 6.5776)
- Here's what you need to know about Australia's election
- Heads up - ECB President Draghi to speak Monday
- GBP/USD lower - toward 1.3400
- More comments from Japan - Aso, Nakaso
- China Securities Journal: 2016 real GDP may slow to 6.6%
- Japan PM Abe: Some uncertainty remains in markets
- NZ May Trade Balance: 358m (+182m expected)
- IMF head Lagarde - Markets had vastly underestimated Brexit
- New Zealand Q2 Employment Confidence index 101.5 (Q1 was 104.8)
- More detail on UK's Osborne scheduled announcement
- UK Financial Times front page: Political turmoil and isolation
- Trade ideas thread to open the new FX week, Monday 27 June 2016
- Boris Johnson says changes to relationship with EU will not come in any rush
- UK Chancellor Osborne scheduled to make announcement prior to mkt open
- UK opposition leader reiterates he will not resign
- GBP lower again
- Spain election results - Conservatives win 136 seats, but short of majority
- Monday morning FX - 27 June 2016 - foreign exchange prices, early indications
Weekend:
- Fluctuations in economic activity: There is only one cause says John Hearn
- It's not just the UK government in turmoil after Brexit
- Scotland's Sturgeon fires up the heat by threatening to veto Brexit
- After the UK Brexit it's now time for Spain to vote, again
- China: Shadow banking probe, and cuts to Taiwan communication
- EU ministers urge the UK to Brexit at full speed
- UK's European Commissioner Hill to resign
- There's life in the UK after Brexit Jim, but not as we knew it
Brexit uncertainty a driving factor again for financial markets today to open the week. GBP dropped in the early, very illiquid hours and despite decent sized bounces its still near session lows as I update and 200+ points lower than Friday's late US session levels.
USD/JPY, too, was an early faller, under 101.50 but it too had a bounce. Japanese PM Abe met with BOJ head Kuroda and his deputy Nakaso in the Tokyo morning Remarks issued soon after on further instructions to take action to support markets, if necessary, from Abe, Nakaso, finance minister Aso and other officials.
Maybe the remarks served to calm Japanese markets, with USD/JPY recovering (only to give back ground later, though) and the Nikkei, too, putting in a positive session (so far at least, and following a huge near 8% fall on Friday). JGB 30 year yields fell to a new record low (0.11%) today.
The People's Bank of China set the reference rate midpoint for the CNY down a whopping 0.9% against the USD today, the biggest one-day slice out of the rate since August of 2015 and the highest USD/CNY mid-point since December of 2010.
In other developments, the election in Spain saw no party win a clear majority, but with gains for the current ruling party.
Apart from yen and GBP; EUR/USD dropped also, down 100+ points from late Friday but slightly above 1.1000 as I update. AUD and NZD/USD fell also. USD/CHF is little changed.
Gold had a good session, to $1335 and thereabouts at one stage before giving some of its session gains back. Oil is down.
Boris Johnson is in the news, back pedalling on some of his rhetoric on Brexit, writing in the UK Telegraph. Johnson wants free movement of labour and free access to the single market, AKA, membership of the EU. Go figure.
Note, UK Chancellor Osborne will be speaking at 7am London time (0600GMT)
Regional equities:
- Nikkei +1.74%
- Shanghai +0.86%
- HK -0.81%
- ASX +0.54%
More: Congratulations to Chile, who beat Argentina in a penalty shoot-out to win soccer's Copa America
