Forex news for Asia trading for Friday 15 January 2021
- Biden's $1.9tln stimulus unlikely to support the US dollar
- The short term lid on the US dollar
- Oil - US plans sale of up to 20 mln bbls of crude oil from its strategic reserve
- US data coming up on Friday includes retail sales for December, preview
- Bank analyst says USD/JPY set to drop under 100
- Poll shows Bank of England still expected to keep rates unchanged until at least 2024
- China December home prices rise 0.12% m/m (prior +0.12% also) and rise 3.8% y/y (prior +4.0%) in December
- PBOC conducts a 500 bn yuan 1-year MLF at 2.95%.
- PBOC sets USD/ CNY reference rate for today at 6.4633
- FX option expiries for Friday January 15 at the 10am NY cut
- RBNZ says recent data breach (hack) is significant, NZ financial system remains sound
- Australia housing finance for November data - home loans values beat
- Biden says plans 100m vaccine shots in first 100 days
- ANZ see gold a little higher this year - forecasts
- UBS see Biden policy changes as less supportive for the US dollar (EUR/USD forecast higher)
- Fanie and Freddie hot potato continues - Trump admin passes problem to Biden
- Goldman Sachs still like iron ore for the next 6 months at least (AUD bulls will like this post)
- US House Leader Pelosi and US Senate Schumer pledge to get right to work on Biden's stimulus package
- Biden plan main points hitting - $1.9tln coronavirus economic rescue package
- Trade ideas thread - Friday 15 January 2021
- New Zealand data - Food Price (inflation) for December +0.1% m/m (prior -0.9%)
- Goldman Sachs says the move higher in US rates is not done yet, targeting 10yr USTs at 1.5%
- Major indices close lower after giving up earlier gains
The main points of incoming US President Biden's coronavirus economic rescue plan were reported a couple of hours ahead of his scheduled speech. The response of markets was underwhelming with not a lot of movement. Biden's speech later was a little more impactful, but not by much; there was a small sell off in 'risk' FX and also in US equity index futures. While outlining an enormous stimulus plan (which, of course, must pass Congress where it may be whittled down some) Biden also said it had to be paid for. He mentioned tax loopholes, though you can be sure there will be higher taxes in the mix also. For the next few months/quarters though its not about deficit concern/austerity from Biden but rebooting the health and economy of the US.
Currencies were fairly quiet, trading small ranges only. The USD and yen outperformed.
