Forex news for Asia trading Monday 20 April 2020
- RBNZ's own preferred core inflation measure +1.7% y/y
- JP Morgan EUR/USD forecast lower citing COVID-19 impact
- More on the US postponement of tariffs payments
- RBA's Lowe unconcerned on government deficit - “If ever there’s a time to borrow, now is it”
- PBOC cuts one and five year lending interest rates
- FX option expiries for Monday April 20 at the 10am NY cut
- PBOC sets USD/ CNY central rate at 7.0657 (vs. Friday at 7.0718)
- Goldman Sachs recommends a long AUD against NZD (target, stop loss)
- US postpones some tariff payments for 90 days
- Get ready for Thursday this week and the (horrible) 'flash' PMI picture for April
- CDB leasing to terminate the purchase, delivery of 29 737 Boeing Max aircraft
- Japan trade balance (March) Y 4.9bn (vs. expected Y +459.9bn)
- NZ Q1 inflation data: 0.8% q/q (expected 0.4%)
- Trade ideas thread - Monday 20 April 2020
- Trump says getting close to a deal on further economic stimulus - could have an answer on Monday
- Singapore's biggest oil traders, Hin Leong Trading, files for bankruptcy
- Canada mass shooting, more than 10 dead
- Coronavirus - UK Times report PM Johnson very cautious about easing lockdown
- US Navy report another unsafe Russian fighter interception of P-8 aircraft
- Japan 6.1 magnitude earthquake eastern Honshu (Japan's main island)
- Australia's top economists recommend social distancing for an extended period
- Coronavirus - 21,000 more UK businesses collapsed in March than the same month a year ago
- US coronavirus cases now above 750,000, doubling in 13 days
- Coronavirus - ECB discussing plans to create a eurozone bad bank to deal with bad loans
- Monday morning open levels - indicative forex prices - 20 April 2020
- ECB price stability comments. Spain extends lockdown. COVID-19 case numbers update.
- Video: 7 things I wish I knew when I built my first home trading office
Movement in Asia FX was relatively subdued for the session here but there were substantial swings in oil futures as trade opened for the week.
The volume of trade in the CL contract has shifted to the June contract but May continued to trade (trade in this contract finishes on the 21st April) and it saw the wilder of the swings. but really the interest is in the June contract now, chart below:
There is always news about for oil, the item of most interest today was huge Singapore oil trader Hin Leong, filing for bankruptcy. Bloomberg reported the firm suffered circa 800m USD is trading losses (see bullets above).
Yen was a mover, losing ground throughout the session, although the range was not large. AUD and kiwi also lost points as did EUR and GBP (this all against the US dollar) but to a lesser extent.
US President Trump continued advocating divisive protests against coronavirus containment measures in the US and also said he thought a deal on fresh stimulus measures would come on Monday.
The PBOC followed its MLF rate cut last week with LPR rates cuts today, to both the one and five year terms.
