Forex news for Asia trading Friday 20 December 2019
- S&P question whether US-China phase one trade agreement will get over the finish line
- China is launching stock index option over the CSI 300 next week
- Mexico's central bank Gov says economy could begin to recover at start of 2020
- AUD traders - heads up for next week's data releases (you're gonna hate me for this)
- New Zealand credit card spending for November +1.6% m/m (vs prior -1.6%)
- More on China leaving lending rate unchanged
- Senator Bernie Sanders says that he will not vote for the USMCA trade deal
- China monthly loan prime rate fixing: 1 year LPR set at 4.15% (prior 4.15%)
- PBOC sets USD/ CNY reference rate for today at 7.0020 (vs. yesterday at 7.0025)
- FX option expiries for Friday December 20 at the 10am NY cut
- Japan's Cabinet has approved a record budget, 102.8 tln yen
- Is there 125m AUD to buy against EUR?
- Here's a CAD view (you really need to read this) - "Canada looks awfully attractive"
- UK business sentiment indicator improves in December
- UK data - consumer confidence improves in December to highest in 5 months
- The 2020 outlooks continue - here's a H2 forecast for EUR/USD to 1.14
- Japan inflation data for November: Headline CPI 0.5% y/y (expected 0.5%)
- Canadian PM Trudeau has asked the US not to sign any trade deal with China until two Canadians are released
- Germany finance ministry on continued global risks, slowing world trade
- Goldman Sachs preferred long in G10FX is the SEK after the Riksbank hike
- Canada will delay stock option tax changes (was due from January 1)
- ICYMI - FT reports on who will be the new BoE Governor (Andrew Bailey)
- Trade ideas thread - Friday 20 December 2019
- US House votes in favour of the new NAFTA (USMCA)
- New Zealand ANZ's consumer confidence index for December +2.2% m/m (prior +1.9%)
The major data release for the session was the Japanese CPI, which showed a slight higher than expected for one of the measures (see bullets above). The yen has done little on the session though, with USD/JPY confined to around a 10 point range. News also that the Cabinet in Japan approved the budget, a new record at 102.8 tln yen - extra fiscal stimulus was announced a couple of weeks ago so this came as little surprise.
From China we got the monthly LPR setting, (again see bullets above) at an unchanged level.
There were some CAD impactful bits an pieces about:
- the US House of Representatives approved the USMCA legislation,
- PM Trudeau urged the US not to sign off on the phase one trade deal with China until the Canadians detained in China are released,
- and at the Democratic debate Senator Bernie Sanders said he'd vote against USMCA.
The CAD lost some ground against the USD on the session.
AUD/USD was also a bit of a mover, gaining 15 or so points on the session. EUR/USD lost a similar amount while NZD/USD is net little changed. Cable is ticking along on its session high as I post, hanging in there above 1.3000.
Still a couple of Friday sessions to go, but from me - have a great weekend everyone!
