Forex news for Asia trading Monday 28 August 2017
- Here is an early Asia wrap - Harvey and Draghi the big hitters
- ANZ on the CFTC (currency positioning) data: net long AUD highest since April 2013
- Goldman Sachs on the week ahead for the UK & Switzerland (data)
- Goldman Sachs on the week ahead for Europe - data & more ECB speeches to come
- PBOC sets USD/CNY central rate at 6.6353 (vs. Friday at 6.6579)
- Bank of Japan bond buying operation:
- " ... no president in the US" says $53bn fund - cuts exposure to US stocks
- More on that EUR area inflation data coming up this week - what Goldman Sachs expect
- Jackson Hole responses roll in - BTMU on dangerous EUR/USD
- NHC says centre of Harvey is forecast to move off the middle Texas coast on Monday
- Bank of Japan bond buying operation scheduled for today
- Its 8am in Tokyo, do you know where your USD is?
- More on the weekend comments from BOJ's Kuroda - to get more bang for JGB buys
- Jackson Hole responses roll in ... JP Morgan Tokyo looking for lower USD, yen
- Brexit - UK Labour says would stay in single market, customs union for transition period
- Jackson Hole responses roll in ... "disappointing those looking for clues on outlook"
- UK press: EU could be open to Brexit climbdown over trade talks
- Trade ideas thread - Monday 28 August 2017
- EUR/USD ... its all about what Yellen and Draghi didn't say
- W/E: German fin min Schaeuble says hope interest rates will rise moderately
- China weekend data - industrial profits (slowest rate of growth for 3 months)
- Economic data due from Asia today - nope
- Monday morning FX - foreign exchange prices, early indications: 28 August 2017
Weekend
- It will all about the euro last week
- Hurricane Harvey rainfall threatens major disaster that will unfold throughout the week
- BOJ's Kuroda: 4% growth unlikely to be sustained
- Hurricane Harvey damage expected to be widespread
- Sweden's government avoids a no-confidence vote after dropping planned tax hikes
- North Korea launches another missile test
- ANZ say to sell the rallies in the Australian dollar
- MS on the political risks impacting AUD and NZD (& AUD/NZD target)
Yellen and Draghi hit the wires late last week on Friday:
The week opened in Asia with notable follow-through higher trade for EUR/USD and GBP/USD as soon as kick-off. Last week finished with both of these higher and that continued here again.
The Jackson Hole news (Yellen not hawkish, well, nothing much at all ... and Draghi not 'jawboning' the euro) was out by the end of trading Friday, but comments from Schauble and Brexit news (a potential EU softening stance) were enough to give a little fresh impetus for early trade.
Having said this, there was no extension of these moves beyond just above 1.1960 for EUR/USD and circa 1.2950 for cable. As Asian liquidity came online both retraced some of their early pop. As I update EUR/USD has slipped to back around 1.2915 and GBP/USD around 1.2885.
EURUSD chart via Bloomberg
EUR and GBP were not, though, the only movers. USD/CHF bottomed just under 0.9540 and has since inched (centimetred?) up on a retrace toward 0.9580, while USD/JPY has charted its own course for the session; from an early low under 109.15 back to 109.40 and then back to 10.
BOJ Governor Kuroda was not to be left out of the Jackson Hole talkfest, he interviewed with Bloomberg (BOJ's Kuroda: 4% growth unlikely to be sustained and More on the weekend comments from BOJ's Kuroda - to get more bang for JGB buys), pointedly highlighting that the BOJ is not done easing, which again makes clear to us there will be diverging policies between the Bank of Japan on one hand the other big two, the European Central Bank & the Federal Reserve, on the other.
CAD, AUD and NZD were all more on the backburner today. AUD and NZD were a little weak for the opening hours but soon gathered a bit of steam. AUD/USD moved up to post a 25 or so gain from its early low, halting its gain circa 0.7950. NZD/USD followed a similar pattern.
CAD is net a little lower on the session in a small range. Which brings us to developments of relevance for oil markets. Which centre, of course, on the huge storm pummeling Texas. Harvey continues to wreak havoc, with widespread flooding and damage. Oil products gasoline and heating oil traded much higher as the week opened (refineries have been hit hard) while WTI is a little down (not too much, but Gulf rigs have escaped much of the storm's ferocity).
Aside from markets, though, the human costs of Harvey's damage have been enormous and it does not not appear to over. Best of luck to everyone affected.
-
The People's Bank of China bumped up the CNY against the USD to its highest in over a year today, and net drained funds from the money market.
Gold, meanwhile, is up small today.
Oh, and finally, there was no data for the majors from Asia today, and it's a UK holiday coming up. Europe is in as normal.
Regional equities:
- Nikkei -0.11%
- Shanghai +0.86%
- HK +0.56%
- ASX -0.68%
More:
Asian markets did not seem to care about this at all, but in the interest of staying informed about factors that may well impact on market:
- While Donald Trump was running for president in late 2015 and early 2016, his company was pursuing a plan to develop a massive Trump Tower in Moscow, according to several people familiar with the proposal and new records reviewed by Trump Organization lawyers.
- As part of the discussions, a Russian-born real estate developer urged Trump to come to Moscow to tout the proposal and suggested that he could get President Vladimir Putin to say "great things" about Trump, according to several people who have been briefed on his correspondence.