Forex news for Asia trading Wednesday 6 July 2016
From the UK Telegraph, and its probably the least damaging policy decision that could be made in the UK at present.
- BoA say USD/JPY profit takers may be triggered on verbal intervention
- One for the equity traders - Goldman Sachs on the S&P500
- North Korea unexpectedly opens the floodgates
- Japan govmt spokesman: Can see risk off selling in FX mkt
- PBOC official calls for research on companies debt
- PBOC sets USD/CNY mid-point today at 6.6857 (vs. yesterday at 6.6594)
- China will allow SOEs to sell assets to ease debt burden
- Aussie press election update - on current trends, Coalition likely 74 or 75 seats
- Goldman Sachs 'slashing' their GBP and EUR forecasts
- Australian state leader says threat to AAA rating is a very real prospect
- Global shipping confidence at all-time low - fears of a global recession, Brexit
- UK data - June BRC Shop Price Index -2.0% y/y (-1.8% prior)
- Just waking up? Here are the big market drivers from overnight trade
- Trade ideas thread for hump day - Wednesday 6 July 2016
- Bank of America Merrill Lynch preview - what to expect from the FOMC Minutes
- Here's the Brexit bus - making (German) lemonade out of (UK) lemons
- Australia - recession risks growing?
- Aussie election - no winner yet. Meet the 5 people who'll decide the next government
- Aussie election counting continues today - still no result as yet
- Brexit fallout - 3 big asset managers have halted trading in real estate investment funds
GBP continued its rapid overnight slide once Tokyo got underway today, and the GBP move triggered a whole lot of smaller landslides elsewhere. AUD, EUR, NZD ... all lower against the USD. The CHF didn't do a real lot.
The yen surged, USD/JPY down more than 100 points from early Asia session highs.
There really wasn't much fresh in the way of 'news' - whatever headlines were crossing were more of the same. I think this one from yesterday was an alarm bell (Standard Life has stopped retail investors selling out of one of the UK's largest property funds) and developments further along the same lines overnight (Brexit fallout - 3 big asset managers have halted trading) are indicative of the bad Brexit news, and fear, firmly taking root. Of course, the Bank of England sounding alarm bells ("Current outlook for financial stability is challenging and some Brexit risks are starting to crystallise") didn't help GBP either. If anyone wants honesty from a central bank, well, you got it from the BoE. I wonder if rather than being honest a little bit of STFU might have been more appropriate? But, I'll leave that question to the policy wonks.
So, trend continuation here in Asia today. The PBOC weakened the yuan yet again while eyes are pretty much focused elsewhere.
Counting continued in the Australian election. Unofficial projections put the current ruling parties (Coalition) edging slightly ahead, with some even suggesting they may fall over the line to form a majority government. These projections are still uncertain though.
Stocks tanked here in Asia today.
Gold kept on gaining higher. Oil fell further.
Yields continued lower; the 20 year JBGs fell below zero for the first time today
Regional equities:
- Nikkei -2.73%
- Shanghai -0.18%
- HK -1.96%
- ASX -1.26%
