Forex news for Asia trading for Friday 18 December 2020
- ICYMI: US States told by federal government they will receive fewer Pfizer vaccine doses next week
- BOJ announces extension to funding package, otherwise policy left unchanged
- Pfizer has applied for approval of its COVID-19 vaccine in Japan
- The US FDA has informed Moderna it will rapidly work towards issuance of EUA for its COVID-19 vaccine
- Bitcoin 'whale' emerges - to hold $1 billion in Bitcoin, Ether by early 2021
- Japan media report the BOJ is to assess factors for the delay in hitting 2% inflation target
- PBOC sets USD/ CNY reference rate for today at 6.5315
- FX option expiries for Friday December 18 at the 10am NY cut
- Trump wanted $2,000 direct payment stimulus checks for Americans
- UK consumer confidence showing signs of improving, not out of the woods yet
- CA says its "Risk Index remains in risk seeking territory"
- New Zealand ANZ business survey for December, final
- US' McConnell says he'll take the COVID-19 vaccine too, 'in coming days'
- Japan inflation data for November. Headline CPI -0.9% y/y (expected -0.8%)
- ICYMI - US warns Pacific islands about Chinese bid for undersea cable project
- Biden transition team senior adviser has tested positive for COVID-19
- US' McConnell tweets - "Senate’s going to keep working right through the weekend until we get an outcome."
- Media reports that the US Treasury is seeking to dilute Trump's ban on Chinese securities
- FDA expected to issue an approval for the Moderna COVID-19 vaccine on Friday
- Trade ideas thread - Friday 18 December 2020
- Ireland's Deputy PM says both sides are edging towards a Brexit trade deal
- New Zealand trade balance for November 252m (vs. expected 255m)
- NASDAQ and S&P close at record highs
- New Zealand consumer confidence indicator +4.8% m/m (prior -1.7%)
The Bank of Japan concluded its final monetary policy meting for 2020 today with an 'as expected' announcement of no changes to the major planks of monetary easing policy but an extension of funding support program to firms (via banks) that was introduced earlier this year in response to the coronavirus pandemic economic impact (specifically the cash flow squeeze on hard-hit businesses). The package was scheduled to conclude in March 2021 but was given a 6-month extension today through to September (and with further to come if the BOJ assesses it as necessary).
The yen weakened from early Tokyo time right through to the BOJ announcement of its decision. USD/JPY has traded to a high circa 103.43 and as of posting has barely pulled back at all from there.
Yen was not only weak currency against the dollar, though, EUR, GBP, AUD, NZD, CAD have all fallen away to varying extents. Gold too has dropped back from its US Thursday high, it touched below 1890 here during the session. The widespread USD strength (albeit in the usual limited Asian ranges) was not triggered by any obvious catalyst, although niggles surrounding the distribution of the Pfizer vaccine in the US may have played some role. This does need to be balanced against news that it appears Moderna's vaccine candidate will (almost certainly) get FDA emergency approval Friday US time.
Bitcoin hovered around 23K.
