Forex news for Asia trading Monday 21 October 2019
We went into the weekend with high hopes of a vote on Boris Johsnon's Brexit deal but this was not to be, the UK parliament instead to delay the vote until formal legislation is prepared.
The key points (read from the bottom up for chronology):
- UK Times says EU will grant a Brexit extension through to February 2020
- Conservatives have the votes for Brexit deal, Raab says
- EU will grant Brexit extension. What happens next
- Brexit: UK lawmakers vote in favour of Letwin amendment
GBP opened with a gap lower in very early trade but soon retraced the whole lot. GBP/USD subsequently fell away again to under 1.2880 before settling in pretty much the middle of its session its range circa 1.2910.
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- More on those comments from Lagarde warning of lower growth
- China's state planner says it is acceptable for the economy to grow a little slower, or faster
- More on that unexpected Loan Prime Rate (unchanged) from China today
- New Zealand data - September credit card spending -0.1% m/m (prior +2.4%)
- ECB's Lagarde (on US-China trade war) - "it's certainly going to give a big haircut the global economy"
- China data - new home prices for September. All China +0.5% m/m (prior +0.5%)
- China sets one year loan prime rate at 4.20% (vs. 4.15% expected)
- PBOC sets USD/ CNY reference rate for today at 7.0680 (vs. Friday at 7.0690)
- More weak exports data, this time from South Korea
- Japan data - September exports drop 5.2% y/y vs. -3.6% expected
- More UK data - quarterly survey of consumer sentiment dips
- UK data - Rightmove house prices for October +0.6% m/m (prior -0.2%)
- Westpac says its possible RBA begins its QE in 2020
- Goldman Sachs says Federal Reserve action has likely prevented a recession
- UK press reports the French government wants a prompt 'yes or no' from UK on Brexit
- China Vice-Premier Liu He: China, US made ‘concrete progress’ towards trade war deal in Washington
- Trade ideas thread - Monday 21 October 2019
- JP Morgan head Dimon says Facebook's Libra "will never happen"
- Here is what Bank of Japan Governor Kuroda did say over the weekend
- More on the EU to grant an extension to Brexit deadline
- Brexit - as the prospects for a 'no deal' exit appears to fade, a GBP positive
- PBOC Governor spoke over the weekend - says yuan is at an appropriate level
- Brexit - UK Health Minister says UK leaving EU on October 31, there is no good reason to delay
- Your weekend catch-up on Brexit developments & why GBP has opened lower in early Asia trade
- Goldman Sachs says now the probability of a no deal Brexit is 5%
- UK Times says EU will grant a Brexit extension through to February 2020
- Monday morning open levels - indicative forex prices 21 October 2019
Weekend:
- Watching volatility: The week ahead playbook
- Conservatives have the votes for Brexit deal, Raab says
- Examples of trading with fresh sentiment
- EU will grant Brexit extension. What happens next
- Brexit: UK lawmakers vote in favour of Letwin amendment
- Huawei in early talks with US telcos on 5G licensing - report
- China vice premier Liu He: We have made substantial progress in US trade talks
- BOJ reportedly may cut inflation forecast for the current fiscal year
- Lagarde says that Trump should stop criticising the Fed with tweets
- ECB policymakers said to not expect any more stimulus even if outlook worsens
EUR/USD opened a touch lower also but it too covered the 'gap' and its little changed now on the session from late Friday. USD/CHF is up a little, as is USD/JPY. AUD and NZD are higher also without setting any records for the day's range.
Canada goes into Monday and its Federal election. USD/CAD is few points higher here in Asia to open the week but again a small range only.
Apart from the weekend Brexit developments the focus for the session was on China's benchmark Loan Prime Rate setting, which comes along once a month. The one-year LPR was expected to show a small interest rate fall but instead it was set unchanged from September. A small cut was expected to help as some added stimulus for China but it did not eventuate. AUD and NZD held their gains regardless.
Buckle your seat belts for the UK session, plenty of Brexit developments to come.
Still to come:
- FX option expiries for Monday October 21 at the 10am NY cut
- CAD traders - its election day in Canada on Monday 21 October 2019 - preview
- CAD traders - heads up for the Canadian election Monday 21 October 2019
- Big data week coming up for CAD traders - Tuesday's is the most important before the BoC meeting
- Note this for Thursday - US VP Pence to speak on China
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BTC had a solid weekend: