Forex news for Asia trading for Thursday 24 December 2020
- Hope increasing for a Brexit trade deal - GBP gaining (and EUR also)
- PBOC sets USD/ CNY reference rate for today at 6.5361(vs. yesterday at 6.5558)
- FX option expiries for Thursday December 24 at the 10am NY cut
- UK media say the Prime Minister Johnson is expected to make a Brexit announcement at 11am Thursday
- An EU official says expect a Brexit statement Thursday morning
- Japanese PPI Services data for November: -0.6% y/y (expected -0.6%, prior -0.5% revised)
- Hardline pro-Brexit Tory MPs say they'll scrutinise any deal in great detail
- Brexit - UK Cabinet has been given a heads up for call with PM Johnson in coming hours
- Trade ideas thread - Thursday 24 December 2020
The headline to the post pretty much sums up the session here, there was a drip-feed of Brexit trade deal headlines, none of which had much substance but put together they provided a bit of hope that a deal is close. Its best to bear in mind that the one (European) official who specifically mentioned a deal said it was not yet finalised. Otherwise it was news of meetings to come and announcements to be made.
For the currencies GBP was a beneficiary, and as I update its testing 1.3560 against the dollar. EUR/USD is encountering some two-way (in thinner than normal trading conditions as interbank begin to pull the pin (that's code for go to the pub) for the holiday) around its US time high.
Overall the USD has lost a little ground across the board in small ranges.
And that's it for me, Justin will be along soon to usher us all through the European time. Have a very Merry Christmas everyone!
