Forex news for Asia trading Monday 16 October 2017
- EUR/USD: 1.1790 a level to watch into early Europe
- FX options expiry for the New York cut at 10am, Monday 16 October 2017
- China Sep. CPI 1.6% y/y (expected 1.6%) and PPI 6.9% y/y (expected 6.4%)
- Oil - Iraqi forces continue advancing on Kurdish oil fields
- PBOC sets USD/CNY central rate at 6.5839 (vs. Friday at 6.5866)
- PBOC statement - Governor Zhou says economy expected to grow 7% in H2
- What to watch for at China's Communist Party Congress
- South Korean military officials readying for another possible missile launch North Korea
- China lending exceeds expectations (September credit growth data)
- Japan press on election polls: Abe "poised to win over 300 of the 465 seats"
- China press on GDP projections (Also, CPI preview)
- US Tillerson said diplomatic efforts on North Korea will continue until first bomb drops
- Reuters on "What Austria's election says about Europe's political landscape"
- More detail on the "Some ECB Members Identify 2.5 Trillion-Euro QE Limit"
- New Zealand services PMI for September: 56.0 (prior 57.3)
- Some ECB policy makers see QE limit of just over EUR2.5t
- New Zealand election update - maybe we'll get a government this week
- GBP is up a tad in early Monday trade - May / EU Brexit meeting coming up
- More detail on "Theresa May to make unannounced Brussels trip for Brexit meeting"
- Here we go - Sky reports Theresa May to make surprise Brussels trip for Brexit meeting
- Trade ideas thread - Monday 16 October 2017
- Where that USD at?
- PM May in attendance - UK press - David Davis to make "emergency trip" to Brussels to kick-start Brexit talks
- Economic data due from Asia today - China inflation the focus
- Bank of Japan Governor Kuroda says target ‘is still a long way off’
- Federal Reserve Chair Yellen spoke on Sunday: biggest surprise of 2017 has been inflation
- ECB's Constancio says inflation will peak up (despite slow wage growth)
- ECB's Villeroy says QE reduction will be gradual
- Australia's Morrison says interest rates and exchange rate at appropriate levels
- Merkel faces tight election contest in Lower Saxony
- UK's Grayling says he doesn't see a no-deal outcome on Brexit
- China's Zhou says economy has shown signs of strong and stable growth in 2017
- China Sept M2 money supply yy +9.2% vs 8.9% exp
- Don't dig yourself in a hole in your life or in your trading.
- We're hiring: Two jobs for journalists up for grabs
There was plenty of weekend and Monday new and data to drive FX ... but none if it really did.
Oil, however, caught a bid, up half a dollar to open the week with some military activity in the Middle East (Oil - Iraqi forces continue advancing on Kurdish oil fields).
Back to FX ...
Early Monday saw news hit that UK PM May was to visit Brussels on Monday along with Brexit minister David Davis. May's attendance was previously unannounced and its not clear if she is going along to add weight to Davis' visit , although this seems to be the take on it. GBP has done pretty much nothing here in Asia today, a bit of a wiggle close to the levels it was trading at late on Friday only.
USD/JPY is a few points higher after a slightly lower 'open' in very early NZ/Australia. EUR/USD is little changed after a small range session, USD/CHF is a tad higher on the session.AUD/USD and NZD/USD, again not too much to report in a subdued range. The NZ government formation negotiation and jostling continues.
Data from China over the weekend and on Monday showed continued strong credit growth and a higher than expected PPI result (September).
Over to Europe/UK and then US for what, we can hope, is more activity than we got here today.
Check out the bullets above for plenty of central banker speak over the weekend - and more indications on ECB 'tapering' to come down the track.
