Forex trading headlines for Asia Monday 25 August 2014
- BOJ’s Kuroda says Japan only “halfway” to achieving price stability
- 184 convoy vehicles now back in Russia
- Germany’s Merkel says there needs to be a bilaterally agreed ceasefire in Ukraine
- Bank of England’s Broadbent – comment on financial stability
- More from BOJ head Kuroda at Jackson Hole
- Atlanta Fed President Lockhart says of the Fed on interest rates hikes
- Swedish government cuts growth forecast, says to raise more taxes if re-elected
- Pressure builds within Fed to signal new policy course
- German finance ministry sees quick economic recovery after weak Q2 – Spiegel
- Sweden’s Social Democratic Party ready to relax regulatory limit on mortgage financing
- State of Emergency Declared After California Earthquake
- New Zealand election back in focus
- Canada – Poloz seen unlikely to raise interest rates yet, despite rising inflation
- Financial Times: Eurozone inflation trend raises alarm at ECB
- Nikkei reports: Japan government to say production weak in August
- Nikkei: Japan government will end a tax break to promote capital spending at the close of fiscal 2014
- French economy minister urges alternative to German austerity
- Globex remained closed until 0200GMT due to technical problems, here and here
- Burger King in talks to buy Tim Hortons in Canada tax deal
- WSJ’s Hilsenrath: Fed’s Yellen Remains Mum on Timing of Rate Change
- A profile of Janet Yellen, who is “The Mystery Woman Who Runs Our Economy” and what are her plans?
- Goldman Sachs on 3 main themes from Yellen’s speech at Jackson Hole …. and the outlook for US rates
Gap openings all over the place in early New Zealand this morning with a USD strengthening theme.
EUR/USD was one of the biggest , down more than 50 points with much chatter about Draghi at Jackson Hole implying that the ECB is going to have to have a long hard look at continuing weak inflation in the eurozone.
But it wasn’t confined to EUR weakness by any means, with Cable, CHF, and CAD dropping as well against the dollar.
All stabilised as Asian liquidity improved as the morning passed, with EUR/USD the weakest of this lot.
USD/JPY opened higher, too, but traded mainly sideways as the session progressed.
The AUD showed a gap opening lower, too, not a huge gap down in comparison and it retraced all of its gap and then some as the session ticked over.
NZD/USD was a peculiar one. It opened fairly flat but was smashed lower an hour and a half into the morning, losing more than 60 points before stabilising. Some jitters were expressed in the market concerning NZ politics (see bullets, above), but AUD/NZD buying was also a big factor – to new 2014 highs again today.