Forex trading headlines for Asia Monday 18 August 2014
Weekend:
- BoE Carney – Says he would not wait for real wages to turn positive before raising interest rates
- Potential losses in suspected China port metals financing fraud tops $930 mln
- ICRC says Russian and Ukrainian border guards agree to inspection of humanitarian convoy
- BOE’s Carney says UK is more than “halfway to recovery”
- PM Cameron says UK should use its military prowess against ISIL
- How George Soros does it
Monday:
- Weekend press: The Outlook: Federal Reserve Bets It Won’t Wait Too Long on Rates
- Press reports: Credit Suisse played role in Espirito Santo collapse
- 5 things to watch from the US this week
- New Zealand – Performance Services Index for July: 58.4 (prior was 54.7)
- CitiFX on what to watch for in the FOMC Minutes and the Jackson Hole symposium
- “The S&P 500 could hit 2,500 within the next 18 months to two years”
- UK data – August Rightmove House Prices: -2.9% m/m (prior -0.8%)
- “Europe’s lack of growth could lead to Japanese-style stagnation”
- Analysts on what to expect from the Jackson Hole symposium starting Thursday … & FOMC Minutes Wednesday
- EUR/USD technical analysis from Goldman Sachs
- China July new home prices +2.5% y/y (June was +4.2%)
- Australia July New Motor Vehicle Sales -1.3% m/m (prior was +1.7%)
- China, Foreign Direct investment -17% y/y for July (expected +0.8%)
- Goldman Sachs expect S&P500 to climb another 6% ahead of the first Federal Reserve rate hike
Nikkei: Japan planning to increase tax breaks for companies that spend more on R&D projects
- Bloomberg: Misery in Australia Rises to Highest Level Since 2008 in Challenge to RBA
A decent gap up on the New Zealand opening this Monday for GBP on the back of remarks from Bank of England governor Carney reported over the weekend (see bullets, above). It retraced some if its earlier highs but found buyers ahead of 1.6710 and went on to slowly grind higher and retests toward earlier highs (New Zealand morning high seen was around 1.6839).
There were minor gaps higher for the USD against EUR and CHF, really nothing much to speak of and they were covered before spending the session mainly sideways.
Yen opened a little stronger (just a small gap) before USD/JPY too covered its gap and gained ground above 102.40 (but not by much). This wasn’t sustained, though, USD/JPY drifting off 15 or so points. EUR/JPY had a subdued range.
Oil and gold both had subdued ranges.
AUD and NZD were a little more active. AUD chopped in a 15-odd point range against the USD, while the NZD managed a better performance for the session, losing ground early but rallying back 25 points from 0.8475 lows thorough the afternoon.
