Forex news for Asia trading Friday 20 October 2017
- UBS expect China GDP to slow, yuan around 6.6
- New New Zealand PM Ardern comments - will drop National's tax package
- Japan - Nissan’s suspension of vehicle production at 6 plants to hit industrial output
- ECB: SG expect the ECB to extend QE for nine months, monthly pace of €25bn
- More on US tax reform news
- US Senate passes 2018 budget blueprint - sets stage for tax reform effort
- ANZ on AUD/NZD in the new political landscape
- PBOC sets USD/CNY central rate at 6.6092(vs. yesterday at 6.6093)
- FX option expiries for Friday 20 October 2017
- NZD makes fresh low
- "EUR/USD is looking for new drivers ... they are not that easy to come by"
- More 'who will be the new Fed chair?' headlines crossing
- BlackRock picture the top 10 geopolitical risks
- Brexit - More from Merkel - (indicates no movement to phase 2 at this meeting)
- Merkel says Brexit process is advancing step by step
- New Zealand - Outlook for the NZD under the new government
- UK PM May wants Brexit talks to move forward
- Wire headline says Catalan separatists ask supporters to take cash out of banks
- TD on what's next for the RBA following the strong employment report
- Trade ideas thread - Friday 20 October 2017
- Ex-RBA Stevens says Global markets complacent over inflation risks
It was a quiet session to begin with. News out of Spain that Catalan separatists ask supporters to take cash out of banks on Friday morning might cause a bit of stir in early Europe. EUR barely budged though.
There were also a few comments out of the EU meeting re Brexit - comments from May and Merkel most notably. There was little there to move GBP too much - May pleading for progress in the talks to the next stage and Merkel saying ... nope. Nothing new added.
We did get a (very) minor flurry on headlines that advisers to President Trump are leaning towards Taylor or Powell (Powell had been tipped as a favourite a few hours beforehand:
And, then, the action started:
The USD moved sharply higher across the board, yields on USTs jumped. Check the links out for a summary of the details of the passage, but do also note that this is just one step on the path and there is much to be done still.
USD/JPY moved up through 112.80 and continued climbing to circa 113.30. EUR/USD dropped, USD/CHF higher and cable fell.AUD/USD dropped from around 0.7870 to around 0.7830 and the NZD/USD, which had already been slipping a little fell toward 0.6970. USD/CAD added 30+ points also.
Like I said - USD strength across the board.
Gold, too, its down around 8USD on the session.
And, a reminder - it's the Japanese election on Sunday:
