Forex news for Asia trading Friday 21 June 2019
- NY Times report that Trump approved military strikes against Iran but pulled back
- U.S. FAA prohibits operators from flying over some Iran-controlled airspace
- ICYMI: China National Gold studying a bid for a stake in Canada’s Iamgold
- More on Japan's CPI data earlier - may force more BOJ action
- ANZ: "RBA seems to be in a hurry to get the cash rate lower". Forecast rate cuts in July and August.
- Friday's yuan setting takes the onshore CNY to its strongest in nearly 6 weeks
- SG on the Bank of Japan - on hold … until 2021
- PBOC sets USD/ CNY central rate at 6.8472 (vs. yesterday at 6.8805)
- FX option expiries at the 10am NY cut on Friday 21 June 2019
- Recap of the Japanese CPI data - more pressure builds on the BOJ to act
- After yesterday's BOJ meeting the forecasts for the next one are rolling in already
- Japan Nikkei/Markit Flash PMI (June) Manufacturing: 49.5 (prior 49.8)
- China press - Impact of further US tariffs on Chinese economy likely limited
- US stock market rally "supported by sentiment and hype and hopefulness”
- EU's Juncker says to prepare measures against Turkey
- NZD traders - Westpac sees the RBNZ cutting the cash rate in August
- Rumours of explosions at an Iran nuclear plant (rumours folks, unconfirmed)
- Japan CPI data for May: Headline inflation 0.7% y/y, in line with expected
- Australia - preliminary CBA PMIs for June. Manufacturing 51.7 (prior 51.0)
- China and North Korea agree they need to work together
- ICYMI - (not FX, but could be related) Goldman Sachs cut its price target on Tesla
- Breaking news (LOL) - the EU will hold another summit
- ICYMI: EU agrees to extend Russia economic sanctions for six months
- If you are waiting for quantitative easing from the RBA you may have a longer wait than you expect
- RBA Gov Lowe hints 'cements expectations for additional cuts' - curtailed AUD rise
- If you still have your 'Dow 10,000' hat you might want to rejig it for Bitcoin
- Trade ideas thread - Friday 21 June 2019
- PM Trudeau promises Canada is a stable and reliable source of uranium for the US
- Video - Fed Chair Powell folded on rate decision
- S&P closes at new all time highs
- Iran says US unmanned aircraft entered its airspace unlawfully
The USD lost further ground here in Asia again today, most notably against those three in the headline.
We did get some data (Japan CPI the most notable, core measures falling from the previous month) but these were not the focus. What was in focus were rising tensions between the US and Iran.
Rumours began early (they remain unconfirmed) that there had been an explosion at an Iranian nuclear power plant. Following later was a directive from the US Federal Aviation Administration prohibiting US operators from flying in an overwater area of Tehran-controlled airspace over the Strait of Hormuz and Gulf of Oman.
This was followed by a media report (New York Times) that US President Trump had approved military strikes against Iran but cancelled them prior to missiles being fired.
More on all of these in the bullets above.
Rising tensions have continued to support flows in yen, with USD/JPY dropping towards 107 on the session. The USD lost ground against most other currencies. EUR, AUD, NZD, CAD, GBP all are slightly higher here on the session.
The more notable moves though were in gold and BTC. Gold cracked above 1400USD. It broke to fresh five year high yesterday in the wake of the FOMC and went higher again here in Asia today. Highs registered above 14212.
A positive mover has also bee bitcoin (and other cryptos). BTCUSD moved to 9800USD today before dropping back toward 9700.
