Forex news for Asia trading Tuesday 25 November 2014
- Rumour – EU to request further cuts from French budget
- Australia – ANZ Roy Morgan weekly Consumer Sentiment: 114.3 (vs. prior 113.0)
- US moving towards imposing tariffs on some China goods
- Japan – more on that Sankei poll …. 42% to vote for LDP
- Japan October PPI (services): +3.6% y/y (vs. +3.6% expected)
- BOJ meeting Minutes released
- Singapore Q3 GDP +3.1% q/q at annualised, seasonally adjusted rate (Reuters poll expected +1.3%)
- BOJ Minutes – some worry about perception BOJ is financing deficit
- Bank of Japan (BOJ) Governor Kuroda … recovering moderately as a trend
- French economy minister Macron: French govt has to take steps to make public debt sustainable
- JPMorgan – risk that Japanese authorities may increase their rhetoric against a sharp drop in the yen
- Japanese government leaves overall economic assessment unchanged in November
- New Zealand Q4 2-year inflation expectations: 2.06% (prior 2.23%)
- BOJ Nakaso – Decision to expand QE intended to show strong commitment to achieving price target
- More from Kuroda – Efforts to restore Japan’s fiscal health very important
- Ferguson shooting case – police officer not to be charged
- ECB’s Noyer: Weak European inflation is despite accommodative monetary policy
- BOJ’s Nakaso again: BOJ has found episodes showing deterioration in JGB and money markets
USD/JPY popped above 118.50 on the release of the BOJ Minutes in Tokyo this morning. The level was swiftly rejected, though, and with buyers depleted USD/JPY moved steadily back below 118 toward 117.75 before finding support again. EUR/JPY (and other yen crosses) fell hard, too, E/Y off a few pips short of a big figure. All sorts of comments today from Bank of Japan (BOJ) Governor Kuroda and a deputy governor, with nothing new being added from them.
EUR/USD, GBP/USD both came off a little, in the order of 20 or so points with the cross selling. USD/CHF up a similar sort of pip amount. EUR/CHF edged a few tics higher through the session.
AUD and NZD continued their trip down the s-bend, each falling further after the overnight drop. NZD the overall bigger loser of the two.
And, coming up soon in the UK morning … Speeches, testimony etc. from RBA, ECB and BoE
