Forex news for Asia trading Wednesday 21 June 2017

  • "Asia firms' confidence at three year-high on brighter global outlook"
  • China A share in MSCI EM index ... full inclusion may take >9 years
  • US politics: Republican wins "Georgia's high-stakes special election", CNN projects
  • Bloomberg: "Amazon Has at Least One Fed Official Rethinking Inflation"
  • PBOC sets USD/CNY reference rate for today at 6.8193 (vs. yesterday at 6.8096)
  • PBOC survey - Bankers' confidence in the economy improved in Q2
  • Australia - Westpac Leading Index (May): -0.02% m/m (prior -0.12% m/m)
  • BOJ meeting minutes (April 26/27 meeting) out now
  • Hated the boxing post? Don't open this one then: Ken has a bun!
  • Heads up for BOJ meeting minutes (from April 26/27)
  • China - MSCI expects initial inflows around USD17bn to 18bn
  • Reuters survey: 40% of Japan firms say domestic demand is biggest headache
  • Here's a quick Toby Crabel video
  • OIL - Mexico's PEMEX to temporarily increase gasoline imports after fire
  • Japan - another upgraded economic assessment to expect soon
  • UK - 30 Tory MPs tell the PM that a 'No Deal' on Brexit is unacceptable
  • Comments from UK PM May (ICYMI): Will see Brexit through
  • Japanese govt likely to raise its economy assessment
  • Forexlive Americas FX news wrap: GBP the weakest. Fed's Evans/Kaplan nervous about inflation
  • Trade ideas thread - Wednesday 21 June 2017
  • More from Fed's Kaplan: Will to be patient, wait for more data
  • Swedish Riksbank's Jochnick: Economy looking good generally
  • MSCI will include China A shares in its EM index
  • OIL - private inventory data shows a bigger than expected draw in US crude stocks

The big news today was the announcement from MSCI of inclusion of China A shares into the Emerging Markets Index. This has been a long time coming, and it'll be a long time until full inclusion, but China shares are on the way:

  • MSCI will include China A shares in its EM index
  • China - MSCI expects initial inflows around USD17bn to 18bn
  • China A share in MSCI EM index ... full inclusion may take >9 years

We had some US politics also (insert cheering for your team here) with the Georgia 'special election'; the seat was held for the Republicans by Karen Handel - congrats! Republicans have held the seat since 1979 (the trend is your friend, right? :-D )

Both of those news items electrified the forex markets! Actually, no, they didn't. It was a snooze fest again today with subdued ranges pretty much across the board. EUR/USD has managed to edge a few pips higher, while the CHF against the USD has also gained a little ground. Cable is barely changed.

USD/JPY has managed to edge a little lower (USD/JPY is on its lows for the session as I update, having dropped circa 20 points). The slightly better bid tone to the yen has helped the Nikkei drop a little, weighed on also by a weaker lead from the US overnight. News today of movement around North Korean missile test sites caught little attention but did contribute slightly to the tone away from 'risk'.

AUD is little changed but nevertheless on its session lows after a soft overnight. NZD is pretty much the same, on its session lows also.

USD/CAD is slightly firmer but not on its high.

Gold has gained a few dollars on the session.

Regional equities:

  • Nikkei -0.43%
  • Shanghai +0.15%
  • HK -0.56%
  • ASX -1.35%