Forex news for Asia trading Monday 8 July 2019
- HK press says China is to use 'national security' as bargaining chip in trade talks
- Deutsche Bank restructuring: 18,000 jobs to be cut, bank exiting equity sales and trading
- HKD forecast to 7.85 by end o f 2019 (BOA ML)
- Australia - ANZ job ads for June: +4.6% m/m (prior was -8.4%)
- PBOC sets USD/ CNY central rate at 6.8881 (vs. Friday at 6.8697)
- Morgan Stanley on the AUD - support from the three pillars of Australian economic stimulus
- BOJ Gov Kuroda: Will maintain easing for as along as needed to hit stable 2% inflation
- One for the gold folks - China reserves higher again in June
- China forex reserves higher than expected for June. Gold reserves huge also.
- FT piece: UK nears recession as Brexit deadline looms
- Japan Core Machinery orders for May -7.8% m/m (expected -3.7%)
- Japan BoP Current Account Balance for May: ¥ 1594.8B (vs. expected ¥ 1380.9B)
- A big week coming up in Canada - Bank of Canada on Wednesday - preview
- EUR/USD forecasts - higher through to year end
- Friday's "other" jobs report (and what it means for CAD)
- ECB's Villeroy says Bank will act decisively if needed
- Gold - more sugar high?
- Weekend HK press: US-China trade war, Trump and Xi are no closer to a deal
- Trade ideas thread - Monday 8 July 2019
- US President Trump says if the Fed knew what it was doing it'd lower interest rates
- US President Trump says Iran had better be careful (re nuclear enrichment)
- ECB's Coeuré spoke over the weekend - comments on Lagarde, not on his economic not policy outlook
- Turkey's central bank chief Murat Cetinkaya was fired over the weekend
- Monday opening FX rates - foreign exchange prices, early indications
Regional equity markets had a poor showing here in Asia as you'd expect given Friday's US moves in response to the beat on the NFP. ICYMI, the NFP came in well above expectations putting a final nail in the coffin of those expecting a 50bp rate cut from the FOMC at the end of this month.
Along with the falls in stocks on Friday the USD surged and yet while local equities slipped here today the FX space was restrained (with one notable exception).
USD/JPY traded early below 108.50 but soon began to make some gains pre-Tokyo trade. 108.60 proved a step too far though and it has come back towards 108.40 as the session progressed. Yen crosses gained early with the move and have also since pulled back.
EUR, GBP, AUD and NZD have all done little against the USD, NZD/USD the best out of that sleepy lot. Oh, USD/CAD is little changed also. USD/CHF, meanwhile has come off just a few points.
The exception in forex today was the Turkish lira. Over the weekend the Turkish President fired the head of the central bank. No official reason was cited although its widely accepted its because the Governor did not cut interest rates. Dunno why Trump is not a bigger fan of Erdogan ;-).
USD/TRY traded early here (in what little trade there was) above 5.8 before dropping back. Its around 5.7590 as I update (its changing in a blink though), after multi-big figure moves.
Still to come:
