Forex news for Asia trading Friday 4 January 2019
- US Dec. NFP data is due at 1330GMT - all the previews in one place (CAD too)
- Japan MoF Asakawa says will take appropriate steps on FX in needed
- Japan finance minister Aso says corporate conditions are extremely good
- Japan press: Shaky markets spur meeting of Bank of Japan and finance officials
- More on the US House passing bills to end shutdown (best to read on folks)
- BOJ Gov Kuroda says markets somewhat rough, cites unexpected overseas developments
- Goldman Sachs on the 'signal in the noise' of the FX flash crash
- China Caixin / Markit PMIs for December: Services 53.9 (exp 53.0), Composite 52.2
- China and the US to hold vice-minister level trade talks January 7 and 8
- PBOC sets USD/ CNY central rate at 6.8586 (vs. yesterday at 6.8631)
- Heads up speculative yen traders, Japan's Ministry of Finance is watching you closely
- Japan's Asakawa says will closely monitor FX
- Japan December Manufacturing PMI at an 8 month high
- UK press: Europe hints at backstop vow to get May’s Brexit deal through Commons vote
- US Pelosi: We aren't doing a wall, that's that
- UK data - British Retail Consortium report shop prices rising fastest in 6 years
- USA - Democrats take a big step toward protecting the markets from Trump
- Bank of America / Merrill Lynch on where to for FX in 2019
- US stock funds record December withdrawals
- Rate markets pricing a quarter-point Fed cut within 18 months
- UK Brexit minister says a 2nd referendum would cause more division
- Australia services PMI data for December falls from November
- Trade ideas thread - Friday 4 January 2019
- US private oil inventory data, larger than expected draw in headline crude
The yen was a mover again today, not nearly so wide-ranging as Thursday's flash crash trade though. Lows for USD/JPY on the session were just above 107.50 and from there it gained relatively steadily to above the New York trade session highs to top out (as I post) circa 108.40+. The first day of trade for the year on the Nikkei index say it open weak, drop a little further but then gain back a little.
Jawboning out of Japan (see bullets above, but in brief) :
- A meeting of the BOJ, MoF and FSA (this happened at 0400GMT)
- Comments on watching speculative moves on the yen
- Aso assuring the markets that corporates were doing fine
- Even BOJ Governor Kuroda weighed in
It was all fairly mild stuff and not unexpected.
Japanese government bond yields fell alongside.
Asakawa added more later, a little more forcefully this time :
News and data flow otherwise was light. China's Caixin Service and Composite PMIs showed improvement (the Composite hit a 5 month high). Chinese stock markets had a good session indeed. The rebound was helped by strong financial firm stockmarket performance. Having said this, the early move for the Shanghai Composite (before the gains) was to hit a 4 year low. Hong Kong's Hang Seng index rose also.
EUR/USD had a small range, to highs just over 1.1410 before drifting back to be little net changed on the session. AUD/USD held above 0.7000, to highs circa 0.7030, heling AUD/JPY to a strong session result.
Kiwi is a touch higher also. Cable is little net changed on the session, up a few tics.USD/CHF has traded a little higher also after early session lows a bit soft around 0.9855.
USD/CAD has done little. Gold and silver had a good session.
Still to come:
- US nonfarm payroll report due at 1330GMT, preview
- Canadian Employment report for December due today, preview (& CAD implications)
- Preview of the US NFP figures due Friday, and what to expect for FX
- US nonfarm payroll preview
- Goldman Sachs nonfarm payrolls preview
- Forex options expiries today, Friday 4 January 2019
