Forex news for Asia trading Monday 10 August 2020
- AUD traders - Heads up for business confidence due Tuesday 10 August 2020
- Failed Chinese bank cut loose from PBOC support - going under
- For the TRY traders - Goldman Sachs forecasts
- China inflation figures for July. CPI 2.7% y/y (vs. expected 2.6%) & PPI -2.4% y/y (expected -2.5%)
- Planned $765 million loan to Eastman Kodak has been put "on hold" - congressional scrutiny
- PBOC sets USD/ CNY reference rate for today at 6.9649 (vs. Friday at 6.9408)
- FX option expiries for Monday August 10 at the 10am NY cut
- Fed's Evans: US should implement another coronavirus aid package - 'incredibly important'
- NZ prelim July Business Confidence: -42.4 (prior -31.8) & Activity Outlook: -17.0 (prior -8.9)
- US - Pelosi & Mnuchin open to restarting COVID-19 economic recovery talks
- Prominent HK business figure arrested for colluding with foreign powers
- Trump comments on the payroll tax temporary cut
- RBNZ monetary policy decision due this week - preview
- Up to a third of UK employers expect to cut jobs by October
- Weekend news ICYMI - Trump signed 4 executive orders for economic stimulus (more will be needed though says Goldman Sachs)
- RBNZ monetary policy meeting this week - fewer 'shadow board' members consider further stimulus appropriate
- Trade ideas thread - Monday 10 August 2020 (take 2)
- US says Chinese hackers targeting election infrastructure in the lead up to the presidential election
- Magnitude 5 earthquake off the (Pacific) coast of Central America
- Rise in US-China tensions (WeChat specifically) to fuel a stronger US dollar
- Short EUR/USD trade recommendation
- Coronavirus - Japan PM Abe will work to to avoid any further state of emergency declarations
- PBOC Gov says growth in credit should be at a notably higher pace than last year
- Weekend news - US imposes sanctions on Hong Kong chief executive Carrie Lam
- Monday morning open levels - indicative forex prices - 10 August 2020
- Trump executive order on unemployment benefits will slow negotiations
Trump signed four orders over the weekend to provide some economic relief when Congressional talks failed to reach agreement at the end of last week for further stimulus. The impact of Trump's orders, while positive, were fleeting. While welcome they are very much a stopgap measure and indeed both sides on Congress have indicated there will be further negotiations this coming week. A key risk is that a deal will be delayed further, or not reached at all, which poses downside risks to the nascent economic recovery.
US-China relations deteriorated a little further over the weekend, the US imposed sanctions on HK and China officials, accused Chinese hackers of targeting US election infrastructure, while high-profile pro-democracy figures were arrested in Hong Kong on Monday.
None of this translated into much major forex rate volatility. As noted in the headline, Japanese and Singapore markets were closed for holidays in those countries, which put US Treasury trading on hold until later on Monday. Major currencies are mainly up a few tics across the board against the USD, but the ranges have been very small.
EUR/USD, not much change:
