Forex news for Asia trading for Tuesday 16 February 2021
- ICYMI - Goldman Sachs has raised its target for USD/JPY citing stimulus, real yields
- US Sec State Blinken statement following the rocket attacks in Erbil - "outraged"
- JP Morgan core currency trade recommendations
- FX option expiries for Tuesday February 16 at the 10am NY cut
- Bank analyst likes a higher AUD/JPY on relation trade boosters
- South Korea to get 40m extra coronavirus vaccine doses - Novavax
- Japan Finance Minister Aso says need to watch bond yields
- RBA February meeting minutes - very significant monetary support to be needed for some time
- BOJ Gov Kuroda says the Bank will continue its current policy to support the economy
- A small bid for risk currencies as UST price slips (10yr yield to its highest in 11 months)
- Early preview of the next RBNZ and RBA monetary policy meetings
- Goldman Sachs estimate 'forced savings' will rise to $2.4tln, spending wave ahead
- Australia ANZ/Roy Morgan survey of weekly consumer confidence 109.9 (prior 111.4)
- Iran testing Biden - US service member injured in attack on Erbil, Iraq
- Trade ideas thread - Tuesday 16 February 2021
Currencies and regional stocks benefitted from continued optimism over vaccine-fuelled global recovery and stimulus yet to come from the US and elsewhere. The USD slumped (not against the yen) with strong showings from the New Zealand dollar and sterling most notable. As I update AUD/USD is back above 0.7800 and USD/CAD is testing towards 1.2600.
The yen lost further ground through the session and is above 105.50 against the dollar with higher yen crosses accompanying as currencies strengthened. Commodities were higher, copper flagging demand recovery expectations yet again as it rose towards a 9 year high. Oil stabilised somewhat, not adding to its recent gains. Gold was up a few dollars, outperformed (in % rise terms) by silver today (chart below). Bitcoin jumped back above $49.5K (its dropped back a touch since)
On the Geo-political front there was a rocket attack on a coalition base in Iraq (see bullets above) but with little impact upon the USD.