Forex news for Asia trading on Monday 11 October 2021
- Federal Reserve Bank of Chicago President Charles Evans speaking (late) Monday US time
- Moody's says if China's power cuts are short-lived the effects on GDP will be limited
- Nomura estimate of China property developers debt load is $5 trillion
- More on the stronger yuan. Trade-weighted index above 100, highest since early 2016.
- PBOC sets USD/ CNY reference rate for today at 6.4479 (vs. estimate at 6.4490)
- Floods and landslides in northern Chinese province of Shanxi (major coal-producing area)
- 3 reasons gold will fall further, target for year-end in 2021 & 2022 price
- TD on energy markets - tail risks (higher still)
- Everyone set for another week of China Evergrande news? Expected default imminent.
- Weekend - US Senate Republican Leader McConnell says will not help raise debt ceiling again
- US-China talks on trade: China floated the idea of cancellation of tariffs & sanctions
- Trade ideas thread - Monday 11 October 2021
- Bank of England Governor Bailey weekend comments on inflation, unemployment, policy
- New Zealand announced a big jump in COVID-19 cases on Sunday
- Goldman Sachs cuts its US GDP forecast: 5.6% y/y for 2021 (vs. 5.7% previous)
- Monday morning open levels - indicative forex prices - 11 October 2021
- Fed's Daly: Longer bottlenecks with high spending would mean inflation
- Lebanon goes without power for 24 hours as supplies run out
- Bank of England Saunders says market pricing an earlier rate rise is appropriate
- China has proposed a ban on private news media
- Australian Navy to replace its European MRH 90 helicopters with US-made Seahawks
- Weekend - China's President Xi said reunification with Taiwan must, will be achieved
Rising oil prices and falling yen were the main themes again here during Asia to open the week.
AUD and GBP were notable risers but NZD, CAD and EUR also showed strength. USD/JPY is above 112.50 as I post.
There was a decent flow of news over the weekend and during the session (see bullets above) in brief:
- Lebanon saw a 24 power outage
- Continuing rain in northern China caused widespread flooding and landslides and subsequent deaths, injuries and damage - 60 coal mines have suspended operation
- two officials from the Bank of England Monetary Policy Committee, including Governor Bailey himself, hinted at UK rate rises
- there was further promising news of the US and China talking on trade issues
The People's Bank of China set the onshore yuan stronger again today and further drained funds from the banking system (see bullets above).
Reminder:
