Forex news for Asia trading Thursday 28 March 2019
- ANZ on the EUR - risks skewed to the downside in the months ahead
- ANZ update their RBNZ rate cut call, expect first cut in August
- Here are all the new RBNZ monetary policy committee members
- China Premier Li still speaking - talking up Chinese economy
- US official says trade talks with China have made progress, sticking points remain
- China's Premier Li says global economy is facing slower growth, rising uncertainties
- PBOC sets USD/ CNY mid-point today at 6.7263 (vs. yesterday at 6.7141)
- BNZ says the RBNZ threw 'a cat amongst the pigeons in moving to a formal easing bias'
- New Zealand: ANZ business confidence for March: -38.0 (prior -30.9) & Activity Outlook: 6.3 (prior 10.5)
- Fed's George says the US economy is operating above its potential
- Here are the Brexit votes that got the closest - pointing to a way forward?
- Brexit … MOAR: Rees Mogg says he'd vote against May on MV3
- Fed's George: Fed can take a wait and see approach, notable downside risks to economy
- The eight Brexit votes - result in summary
- Brexit ideas thread - how is this going to pan out?
- UK Brexit minister Barclay says this process strengthens our view that May's deal is the best option
- Brexit - more vote results … long story short is no majority for any options!
- NZ fin min says economy well placed to weather global down turn
- Brexit - DUP leader confirms party is unable to support May's withdrawal agreement
- Trade ideas thread - Thursday 28 March 2019
- Brexit - BBC report 25 Tory rebels definitely prepared to back May's deal
Bond market yields continued falling here during the Asian timezone. Regional equities, too, lower. Through all this yen was a gainer.
USD/JPY dropped from steady early trade not far from 110.50 toward 110.10, where it has held without a rebound of much note at all.
Brexit news dominated in the early goings on, with all of the 8 votes rejected by a curmudgeonly UK parliament. Prior to the votes taking place May's coalition partner DUP confirmed they would not support her negotiated exit deal with the EU if it came to another vote, they'd vote against. While prospects for approval were slim anyway, this effectively killed pretty much any chance it had of being passed.
GBP dropped on the DUP's unsurprising announcement and extended its losses as the 8 votes were rejected. I wondered aloud if the votes that were close are perhaps pointing the way forward, where negotiations will be concentrated. Seems like a reasonable theory, so given the shambolic state of the UK its probably useless ;-).
And, other ideas here:
So, thats yen and GBP out of the way. Other movers today, not to the same extent, were NZD and AUD. NZD data was poorly again, another drop for business confidence and business activity. Kiwi dropped a few tics only, AUD even less, and both have since rebounded. Positive murmurings from a US official on trade talks did the AUD no harm, dunno how much they should be trusted though .... Mnuchin and Lighthizer have only just arrived in Beijing for talks today. AUD is back near its early session high, while NZD has gone up higher than its early highs. Again .... the moves in small ranges only.
China's yuan was a mover also, CNH (offshore yuan) weakened against the USD, helped along by the PBOC setting the onshore yuan weaker today. USD/CNH a big move up, retraced (also a contributor to the AUD gyrations):
Still to come:
- Heads up for large FX option expiries Thursday 28 March 2019, 10am NY cut
- NZD traders - Don't forget folks, RBNZ Governor Orr will be speaking on Friday
- Clear your diary for Sunday … China PMIs for March are up soon, early indicators are encouraging
- Clear your April Fools Day diary too …. Brexit - UK's Letwin says parliament will reconsider options on Monday
Until then, have a giggle …. New York City woman sues TGI Fridays - says TGI Fridays potato skins contain no potato skins
