Forex news for Asia trading for Wednesday 28 October 2020
- Norway's oil & gas exploration has dropped around 50% this year
- Bitcoin has hit its highest since early 2018
- Australia's ASX has delayed its blockchain transition until 2023
- Call to postpone elections as coronavirus cases surge (in Malaysia)
- RBA monetary policy board member Harper says the Bank can ramp up bond purchases indefinitely
- Coronavirus vaccine production likely to exceed 16bn doses in 2021
- Bank of Canada monetary policy meeting, Wednesday 28 October 2020 - preview
- China urges the US to revoke Taiwan arms sales plan
- PBOC sets USD/ CNY reference rate for today at 6.7195
- FX option expiries for Wednesday October 28 at the 10am NY cut
- An oil ICYMI - OPEC+ set for a three-month output rollover
- Australian Q3 CPI, headline 1.6% q/q (expected 1.5%)
- UK coronavirus vaccine taskforce head downbeat comments
- UK BRC Shop Price Index for October -1.2% y/y (prior -1.6%)
- Coronavirus - More on the potential German shutdown
- US DOJ to hold a briefing on China-related security matters
- Gundlach predicts second Trump victory, says polls are probably wrong again
- Coronavirus - UK press reports there is pressure on PM Johnson for a new lockdown
- RBNZ Gov Orr is speaking, on climate change
- Pennsylvania National Guard has been mobilized to deal with protests
- PBOC hinting the 6% drop in USD/CNY since the end of May is enough, for now
- Germany is discussing a two-week coronavirus shut down
- Brexit - talks at a 'most difficult point' says EU Council President Michel
- Trade ideas thread - Wednesday 28 October 2020
- US election polling - RCP have Trump ahead in Florida
- French President Macron will address the nation on Wednesday evening
- Private oil survey data shows larger than expected build in crude oil inventory
- France said to be considering a month-long coronavirus national lockdown
- Trump is considering issuing an executive order on oil fracking
The euro had been weak in the US afternoon after a limited range session. The slump for the currency accelerated late in the US day, with NZ FX markets trading but little else. The move was prompted by reports that France was considering a month-long lockdown as a circuit breaker for the accelerating COVID-19 outbreak across the nation. French President Macron is scheduled to address the nation at 1900GMT Wednesday and we should learn more then. A few minutes after the French news hit came talk that Germany was considering something similar, reports varying from a 2 weeks to 4+ weeks of lockdown. Again, nothing was or has since been officially announced. Something else to bear in mind, the new lockdown restrictions may well not be as harsh as the lockdown initially earlier in the year (ps. Melbourne Australia readers will rightfully disagree, Australia's second largest city is just emerging from lockdown 2, which was much more restrictive than lockdown 1).
EUR/USD dropped to lows circa 1.1770 before stabilising. AUD, NZD, CAD, yen and CHF all fell alongside, to greater or lesser extents. GBP got a bit of a triple whammy with a Brexit-related headline crossing (EU - UK talks 'most difficult' according to an EU official, see bullets above for more).
On the data agenda today it was Q3 inflation from Australia - the results provided little to change the consensus view that further easing efforts are coming from the Reserve Bank of Australia at their policy meeting on November 3.
Bitcoin headed to its highest since January 2018:
