Forex news for Asia trading on Friday 28 May 2021
- More on the BOJ considering extension to its pandemic economic relief scheme
- PBOC statement on yuan FX rate not to be used to spur exports, offset commodity price rises
- JP Morgan's outlook for Federal Reserve policy ... Q2 2022 taper, rate hike Q3 2023
- Goldman Sachs' outlook for Federal Reserve policy ... Q1 22 taper, rate hike 2024
- PBOC sets USD/ CNY mid-point today at 6.3858 (vs. yesterday at 6.4030)
- Fed's Jackson Hole summit August 26 - 28 will be in person
- Japan's Prime Minister Suga press conference scheduled for 1100 GMT
- Spain rules that investors are obliged to report their overseas crypto holdings
- Coronavirus - Japan will extend its State of Emergency in Tokyo and other areas
- Japan data - May 2021 Tokyo headline CPI -0.4 % y/y (vs. expected -0.5%, prior -0.6%)
- Japan Unemployment rate for April 2.8% (expected 2.7%, prior 2.6%)
- CEO of Binance says crypto can't be suppressed in the long run
- UK data - Lloyds Business Barometer for May: 33 (prior 29)
- RBNZ Gov. Orr says downside risks to the economy have lessened
- AUD/USD for the session ahead - support, resistance, bull & bear fundamentals
- New Zealand - ANZ Consumer Confidence Index for May 114.0 (prior 115.4)
- Goldman Sachs CEO Solomon says he is extremely cautious on Bitcoin ... "buyer beware"
- ICYMI - UK PM Boris Johnson is considering plans for a carbon tax on imports
- BOJ is considering a 6-month extension of its pandemic economic relief measures
- Trade ideas thread - Friday 28 May 2021
USD/JPY has been relatively stable during the session here after its strong rise Thursday. Highs were just over 109.90. Cable backed off just a touch from its strong Thursday rally, back to circa 1.4185 as I post. EUR and NZD have lost a few tics against the dollar, as has CAD.
News flow was light; Japan will extend states of emergencies (official announcement coming at an 11 GMT news conference from PM Suga); the BOJ is speculated to be considering extending its support package for 6 month.
Data flow, too, non-impactful. Tokyo area inflation data was today (see bullets above).
The People's Bank of China set CNY stronger again, but not as strong as surveys suggested. This is likely to be perceived as a signal the Bank would like to slow the appreciation of its currency.
Regional equities advanced, led by a solid +2% from the Nikkei. China's Shanghai index is barely changed.
Coming up on Friday is important inflation data from the US, and also the budget announcement. G7 finance ministers and central bankers meet Friday also:
- On the economic calendar in the US on Friday 28 May 2021 ... a big one for CPI! Preview.
- Friday's US PCE report could cause ripples
- Goldman Sachs seem perplexed about the timing of the release of the US budget (Friday 28 May 2021 US time)
- Heads up for the G7 Finance Ministers and Central Bank Governors' meeting on Friday May 28
BTC down a touch:
