Forex trading headlines for Asia Friday 13 June 2014
- BoE’s Carney says interest rates could rise sooner than markets expect
- New Zealand – BusinessNZ manufacturing PMI for May: 52.7 (prior was 54.4)
- Japan – GPIF’S Yonezawa sees cutting JGB allocation to 30-50%
- New Zealand – Food price index for May: +0.6% (prior was +0.6%)
- China Securities Journal: PBOC is expected to continue with selective injections of liquidity
- Japan finance minister Aso: Not a big gap with Amari on starting tax cut from next fiscal year
- Bank of Japan announcement: No change in policy
- Late headline: Japan PM Abe to announce corporate tax cut policy on Friday afternoon – Jiji
Friday the 13th dawned in Asia … and the cable skyrocketed! The move was in response to BOE Governor Carney’s Mansion House speech (see bullets, above). the initial move hit 1.6900 and there was no consolidation, just a slightly slower move persistently higher for the next hour or so before it finally stabilised above 1.6920. It then set out on another pop to test above 1.6950, after which it tracked sideways.
EUR/USD came off very early highs above 1.3565 to settle around 1.3550, ticking a few point higher from there as the session wore on but not much in it.
USD/JPY today ground out a small gain ahead of the BOJ announcement. ‘No change’ was the news from the central bank (see bullets, above), as expected, but they did upgrade their assessment of overseas markets (also expected). this upgrade to Japanese export markets, combined with the recent on-balance favourable (or at least not overly dreadful) Japanese data is lessening the chance of further easing.
The Kiwi $ took a back seat today after its pyrotechnics in the past 24 hours, settling 30-odd points lower from overnight highs.
AUD/USD was snooze city today, drifting down briefly under 0.9410; it is just above there as I type.
Just a reminder, Bank of Japan (BOJ) Governor Kuroda is scheduled to speak later (at 0600GMT) at a press conference.
