Forex news for Asia trading Monday 23 October 2017
- German press: 'Despondent' May losing sleep on in-fighting, said Juncker
- OPEC & friends last chance to swing sentiment in the oil market this year
- More on China home price data for September - recap
- Japanese Chief Cabinet Secretary Suga - want to speed up Abenomics
- Australia - Q3 inflation report due this week - preview & strategy
- Morgan Stanley outlook for the ECB meeting this week and BoE next
- September property prices: All China new home prices +0.2% m/m & +6.3% y/y
- Deutsche Asset (in HK) says evidence of significant of progress in deleveraging
- PBOC sets USD/CNY central rate at 6.6205 (vs. Friday at 6.6092)
- FX option expiries for Monday 23 October 2017
- Morgan Stanley says BOJ may switch Yield Curve Control to 5-Year JGBs from 10-Year
- China house price data due today - housing minister says sales to slow in Q4
- More UK data - increase in capex intentions reported
- UK data - IHS Markit Household Finance: 43.8 in October (42.8 in September) - recovering
- USD broadly higher; USD/JPY above 114
- UK press reports US preparing to put nuclear bombers on 24-hour ready alert
- Japan election result - "... as expected ... impact (on) yen will likely be limited"
- Italy voting - Lombardy voter 95% in favour or more autonomy
- Yen lower (USD/JPY & yen crosses up) early Monday in Asia - Japan election driver
- Bank of Canada meet this week - preview
- BoA/ML on the FX week ahead: "Signals are mixed for USD but clarity may be close"
- Australian Q3 inflation report due this week - preview
- ECB meeting this week - preview
- Trade ideas thread - Monday 23 October 2017
- Economic data due from Asia today
- Blackrock Investment says Abe's Japan election 'mild positive' for Japan stocks
- Japan elections: PM Abe big win
- Monday morning FX - 23 October 2017 - foreign exchange prices, early indications
Weekend:
- The GBPUSD held below 100 week MA last week. Does that lead to downside this week?
- UK's Fox repeats that Brexit divorce bill can only be decided as part of the final agreement
- Abe set to remain PM with Japan heading to the polling booths
- Puigdemont refuses to accept imposition of direct rule from Madrid
- USDJPY ends the week with a bullish bias. What to look for in the new week
- Spanish government set to impose direct rule on Catalonia
- China expects to meet 2017 GDP target of 6.5%
- Yellen says future economic downturns likely to require further use of unconventional policy
- Anyone but Yellen -- 5 reasons to appoint a new Federal Reserve Chairman
USD/JPY and yen crosses were movers during the morning, with the yen losing ground. Japanese PM Abe performed strongly in the election, with reports he, along with his coalition partner, will retain a two-thirds majority. Policy implications - at this stage it appears the sales tax hike is likely to proceed as planned, but with proceeds spent not salted away, and that BOJ policy will continue unaltered. More:
- Japanese Chief Cabinet Secretary Suga - want to speed up Abenomics
- Morgan Stanley says BOJ may switch Yield Curve Control to 5-Year JGBs from 10-Year
- Japan election result - "... as expected ... impact (on) yen will likely be limited"
- Yen lower (USD/JPY & yen crosses up) early Monday in Asia - Japan election driver
- Blackrock Investment says Abe's Japan election 'mild positive' for Japan stocks
- Japan elections: PM Abe big win
USD/JPY popped higher in very early trade (ps. New Zealand markets were officially closed for a holiday) and continued to above 114 into early Tokyo trade before slipping back to mid range. There is still a bit of a 'gap' left to fill.
News out of Europe over the weekend was more on the political situation in Spain and voting in two Italian provinces that registered for more autonomy, as expected. More:
- Italy voting - Lombardy voter 95% in favour or more autonomy
- Puigdemont refuses to accept imposition of direct rule from Madrid
The USD broadly gained as the USD/JPY was rising, EUR and CHF losing a little ground but it didn't last. EUR/USD and USD/CHF are both little changed from late Friday trade. Yellen spoke late Friday (when FX was finished for the week)
Cable is up slightly on the session, knocking on the door of its late Friday highs as I update.
AUD/USD and NZD/USD were weak early, but both recovered to be higher now than late US trade (only barely)
