Forex news for Asia trading Friday 28 July 2017
- Australia politics (breaking) - Citizenship of government MP in doubt
- China's SAFE say they will crack down on FX irregularities
- Still to come from the US (Friday morning) - Q2 GDP - here's a preview (or 2)
- Still to come from the US tonight - a very late vote on healthcare
- Japan politics! Defence minister resigning
- The Bank of England meet next week - scenarios, strategy & what to expect on GBP
- Australia: Q2 PPI 0.5% q/q (prior +0.5%) & 1.7%y/y (prior +1.3%)
- PBOC sets USD/CNY mid-point today at 6.7373 (vs. yesterday at 6.7307)
- USD/CHF keeps on keeping on, pops 0.9700
- The Bank of England meet next week - preview (20 reasons the MPC will hike rates)
- BOJ July meeting "Summary of Opinions" (sort of an early minutes) - out now
- Japan retail sales for June +0.2% m/m (expected +0.4%, prior -1.5%)
- Japan Inflation (June, national, headline): 0.4% y/y (expected 0.4%)
- Japan (June) household spending 2.3% y/y (expected +0.5%), Jobless rate 2.8% (exp 3%)
- UK data - GfK Consumer Confidence for July: -12 (expected -11)
- Open warfare at the White House - the adults-only rant that'll tear the place apart
- Forecasting & decision-making - the RBNZ is doing it right!
- RBC on Japan's inflation data due today - and yen positioning
- Goldman Sachs recap/views on the FOMC. (Also updating their top trade for 2017)
- You'll never guess which big investment bank is seeing 'green shoots' in oil (ps. again ...)
- Japan inflation data day - 3 banks with 3 different views
- Forexlive Americas FX news wrap: Dollar moves higher. Better data raises GDP expectations
- Japan inflation day (is this the day it all turns around for Kuroda? .... LOLz)
- Trade ideas thread - Friday 28 July 2017
- A big day on the economic data calendar in Asia - buckle up!
- Brexit comments from UK Chancellor Hammond (something about off his rocker)
The CHF had a move in Asia! The weaker trend for the currency continued in Asia today, with USD/CHF up through 0.9700 and then straddling there while EUR/CHF topped circa 1.1360. There was no fresh news nor data to propel the move, continuation.
Mike has been red hot on the CHF weakness:
And Greg:
USD/JPY went into the Tokyo morning, and a big data day, around 111.30 but sold off from there to under 111. Household spending data was a big, big beat on expected, a positive indication on the the Japanese consumer, while inflation data continued its disappointing run for the BOJ, the core-core measure flat again for the month. Retail sales missed. Political news from Japan failed to move the currency too much - the Defence Minister resigning over a scandal in South Sudan!
The BOJ July meeting 'Summary of Opinions' was out today, the Bank is beginning to lay the groundwork for cutting their JGB buying target. Some will call this 'tapering'; its less of an issue now the Bank is targeting YCC - they haven't had to buy as many JGBs as their 80tln target would imply. Reducing the 80tln number is overdue (IMO). I posted on this prior to the BOJ meeting last week. If you missed it, let me know.
EUR was influenced by the EUR/CHF buying in Asia, but EUR/USD has only had a small range (most of the USD effect seen in USD/CHF). Cable has managed to edge a little higher on a bounce after its Thursday weakness.
AUD/USD did not do very much at all here today, it dropped under 0.7960 to retest the overnight low but has not carried on. It hasn't bounced much, either, just under 0.7970 as I update. NZD/USD has been on the heavy side, its pretty much on its overnight low as I post, under 0.7480
NOTE: Still to come from the US tonight - a very late vote on healthcare
