ForexLive Asia-Pacific FX news wrap: PBOC leaves loan prime rates unchanged, as expected

  • Forex news for Asian trading on Monday, 20 February 2023

It was a subdued range-bound day across major FX ahead of the US market holiday today, Monday. The NYSE and Nasdaq are both closed, as is the bond market.

USD/JPY traded higher to begin the session, topping out circa 134.50-odd before slipping back to circa 134.30 as I post. EUR/USD drifted lower initially before it too retraced somewhat. News flow was very sparse. There were no data releases of note.

In China we had the monthly setting of Loan Prime Rates. Last week we had the latest medium-term Lending Facility (MLF) at an unchanged rate. This was strongly suggestive of no change to the LPRs today, and so it was.

The 1-Year Loan Prime Rate was left at 3.65% for the sixth month in a row. Most new and outstanding loans in China are based on the one-year LPR.

The 5-Year Loan Prime Rate was left at 4.30% for the sixth month in a row. Most home mortgage rates are based on the five-year.

Stocks in mainland China and Hong Kong rose.

North Korea fired off two ballistic missile tests. The UN Security Council will hold a meeting on the launches at 2000 GMT Monday (this is 3pm US Eastern time).

Asian equity markets:

  • Japan’s Nikkei 225 flat

  • China’s Shanghai Composite +1%

  • Hong Kong’s Hang Seng +0.9%

  • South Korea’s KOSPI +0.4%

  • Australia’s S&P/ASX 200 +0.1%

USD/JPY:

usdyen wrap chart 20 February 2023

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