Forex news for Asia trading Friday 21 November 2014
- Goldman Sachs says EUR/USD to fall to 1.15 (and more from their ‘Top Trade Recommendations’)
- Japan – NHK reports that ‘Japan government finds funds to cover 2.5% corporate tax cut
- UBS on the EUR/CHF floor … it would be defended with ‘utmost determination’
- China Securities Journal: China should increase targeted easing policies
- German finance ministry: 2014 +1.2% GDP forecast well underpinned
- Shanghai Securities News: China growth below 7% is acceptable for restructuring
- NHK: Japan PM Abe to hold news conference today after dissolution of parliament
- RBA’s Heath: Chinese demand for resources to remain strong in long run
- More from Japan finmin Aso: The speed of yen weakening has been too fast
- New Zealand Credit Card spending for October: +6.7% y/y (vs. prior was +4.4%)
- HSBC cuts GDP growth estimate for Japan – more easing to come
- Comments from Federal Reserve Williams here and here
- PBOC offering short-term funds to financial institutions
Prime Minister Shinzo Abe formally dissolved Japan’s Lower House in preparation for the December 14 snap election
USD/JPY was the centre of attention in the Asian timezone again today. After coming off from highs in the late Tokyo afternoon on Thursday/overnight it struggled to gain ground above 118.25/30 in the early Friday going and soon fell to around 118. Comments from finance minister Aso (see bullets, above) hit the market at the right time and saw USD/JPY slice lower, briefly below 117.50 before getting a bit of a bounce.
Yen crosses, of course, suffered too, although EUR/USd and cable did manage to gain some points during the day.
AUD and Kiwiw, too, had a better day against the USD, bih up around 30 or so points from session lows.
Oil continued its overnight gains, and gold edged pretty much sideways.
And …. coming up soon …