ForexLive Asia FX news wrap: More tariffs on China coming Monday?
Forex and Bitcoin news for Asia trading Monday 17 September 2018
- New Zealand services PMI for August: 53.2 (prior 55.1)
- More UK: BCC downgrades 2018 GDP growth forecast to 1.1% (from 1.3% previously)
- UK consumer spending higher says Visa, fastest growth since January this year
- Japan PM Abe told US President Trump it’s dangerous to mention currencies
- Goldman Sachs says the Fed are a pack of bunny boilers (or almost)
- More on the BCC lowering its GDP forecast for the UK economy this year and next
- Japan press: Russia to take on Australia and Indonesia in Asian coal market
- PBOC to add 1 year funds liquidity through MLF. Amount is 265bn yuan.
- Westpac on the USD and AUD: AUD/USD will be dominated by the USD
- PBOC sets USD/ CNY central rate at 6.8509 (vs. Friday at 6.8362)
- Singapore data for August, exports up but miss estimate
- Leveraged funds, real money FX positioning
- Bank of England Governor Mark Carney is "doing a very good job" says Gove
- Deutsche Bank to shift assets out of London, shrink UK operations after Brexit
- Brexit - BJ says its a car crash. Tesla's Musk says he'll fix a car crash in one hour.
- Trade ideas thread - Monday 17 September 2018
- Weekend oil - Russia and Saudi pledge to continue working toward cooperation
- Nafta update - No talks Monday in Washington between Freeland and Lighthizer
- WSJ reports that China may not talk on trade if more US tariffs are imposed
- Bundesbank head (and ECB board member) Weidmann says can't prevent crashes
- Former Fed Chair Yellen says keep rates lower for longer, let the economy rip
- Sources: Trump to announce $200B of tariffs as early as Monday: WSJ
- Key events/releases in the new trading week
- Trading strategies: trading risk events
- The greater the story, the greater the bubble
Over the weekend the Wall Street Journal reported US President Trump is expected to announce additional tariffs on $200B of Chinese goods as early as Monday. The journal cited an unnamed senior administration official. In turn China trotted out their own unnamed official, who said China would not proceed with planned trade talks (set for 20 September) with a gun pointed at its head - i.e. the new tariffs).
This escalation was a weight on regional stocks here in Asian on Monday, relieved somewhat (barely) by a one-year funds injection from the People's Bank of China.
The Shanghai Composite is on approach to its lowest in four years.
Japanese markets were closed for a holiday.
For FX it was a day of narrow ranges pretty much across the board. There was a tiny amount of movement only. The economic calendar was spare, a few minor releases only. NZD/USD and Cable may have been the largest ranges on the session, clocking in at around 30+ and 25+ points high to low respectively. As i post both, indeed all, are little net changed on the session.
Still to come:
- Heads up for some forex option expiries coming up Tuesday
- AUD traders - what's coming up in Australia this week, mainly from the RBA