Forex news for Asia trading Friday 2 October 2020
- There is likely to be further selling to go on the Hope Hicks COVID-19 infection news
- Trump speaking on Fox says he condemns white supremacists
- Goldman Sachs on all the factors that trump the election impact on US stock markets
- Australia Retail Sales for August, final, -4.0% m/m (prior +3.2%)
- Trump's ban on worker visas has been partially blocked by a US court
- FX option expiries for Friday October 2 at the 10am NY cut
- Reminder (ICYMI), there is no PBOC CNY reference rate setting today
- US equity index futures sliding a little lower (more on Hicks here)
- Trump aide Hope Hicks test positive to COVID-19
- US House has passed the Democrats' coronavirus economic relief bill
- Japan's Nikkei index is up +0.5%, and Topix also, as the TSE resumes trading
- Friday is nonfarm payroll day in the US - Goldman Sachs preview
- Japan Unemployment rate for August 3.0% (expected 3.0%)
- China's ambassador to the US says the two countries should waste no time taking relations onto the right track
- The timetable ahead for a US pre-election economic package is very tight
- Headlines that EU says have reached an agreement - note this is NOT on Brexit
- Tokyo reports 235 new confirmed coronavirus cases on October 1
- Comments from ECB Director Panetta indicate the Bank is edging closer to a digital euro
- Pelosi says she does not expect a deal with Mnuchin tonight (Thursday night, US time)
- US Senate leader McConnell says if Pelosi and Mnuchin agree a deal "will take a look"
- Tokyo Stock Exchange to resume trading on Friday after Thursday's outage (squirrels permitting)
- Some US Senate Republicans want a coronavirus economic relief package before the election
- New Zealand - ANZ Consumer Confidence Index for September -0.2% m/m (prior -3.9%)
- Trade ideas thread - Friday 2 October 2020
- More on Canada launching a CAD10 bn infrastructure plan
- Turkey to suspend flights with Iraq
Early hours in Asia saw US coronavirus economic relief bill news passing (more in the bullets above) but the long story short is that the two sides are still reaching for a compromise. The House passed the Democrat support bill, which at $2.2tln is so far unpalatable to the Republican side and so will not succeed in the Senate. Mnuchin and Pelosi will continue negotiations, Senate leader McConnell says he'll 'take a look' if an agreement is reached. Meanwhile, time is running out for getting a bill approved prior to the US election.
Later news was more impactful though, with close confidante of Trump Hope Hicks returning a positive COVID-19 test. Again, more in the bullets above but in brief:
- Hicks travelled with Trump on Air Force One on Wednesday, alongside many other aides and advisers.
- Trump's entourage were not all wearing masks upon entering the debate and those that were removed them upon being seated.
- Trump and his wife have been subsequently tested and are awaiting results. Given the incubation period of the virus even either were positive it may be too soon to tell from this test.
In the wake of the Hicks news stock markets took a bit of a fright, trading lower. Risk related currencies traded similarly. As I update EUR/USD, AUD/USD, NZD/USD are all lower on the session, USD/CAD higher. USD/JPY, though, is little changed while USD/CHF is up some. Gold is lower on the session.
A reminder (again) that China and Hong Kong were both out today, and that China will be out for most of next week also. USD/CNH recovered some ground further during the session here.
