Forex news for Asia trading for Monday 22 March 2021
Turkish lira collapse - read from the bottom up for the chronological order:
- Turkish lira (TRY) has gained back a little of huge loss
- TRY plunge impact on other emerging market currencies to be "quite limited"
- Remember when everyone on Earth bought toilet paper? TRY is nothing like that today.
- Plenty of early Asia FX gaps on TRY drama
- Globex Sunday evening trade opens, US equity index futures open the week a touch lower
- Turkish lira has opened (in super-thin trade) much lower after central bank head sacked
Other:
- Westpac says the AUD is currently close to the midpoint of fair value range at 0.7720
- NZ will make announcement on the Australia-NZ travel bubble on April 6
- More on the Renesas chip maker fire - production could be halted for up to 3 months
- Iron ore prices in Asia Monday trade are sharply lower
- More from Fed's Barkin - US economy may be on the brink of full recovery
- Bank of Japan Governor Kuroda says his 2% inflation target is helping stabilise FX rates
- China's Loan Prime Rates (1 and 5 year) both left unchanged again
- PBOC sets USD/ CNY reference rate for today at 6.5191 (vs. Friday at 6.5098)
- Giant US fund Blackstone bids for Australian casino operator Crown
- Another hit coming to automotive chip supply - fire halts production at Renesas
- Goldman Sachs expect up to another USD 4 trillion in stimulus from Biden
- Japanese shares are trading lower again on Monday following the BOJ ETF decision on Friday
- South Korea first 20 days of March exports surge
- Short EUR/JPY trade recommendation
- Fed's Barkin says the dot plot is not FOMC policy
- More on the reports the EU to limit AstraZeneca exports to the UK
- Weekend - PBOC Governor Yi Gang says Bank still has space to expand liquidity
- Trade ideas thread - Monday 22 March 2021
- Reports that the EU is set to block the AstraZeneca vaccine and ingredient exports to the UK
- Monday morning open levels - indicative forex prices - 22 March 2021
Weekend:
Over the weekend Turkey's President Erdogan sacked the head of the country's central bank after a rate hike of 200 points on Thursday. Governor Naci Agbal was in the job for only 4 months and had been finance minister in a previous job. Long lira had become a popular trade - Agbal was hiking to fight inflation and to try to restore credibility to the central bank. Lira bulls had expected rates to rise further and were comfortable being long. So much for that trade thesis. His sacking triggered chaos in the TRY, its dropped precipitously in very, very thin and illiquid morning trade in early Asia Monday.
The lira move catalysed risk aversion in the early hours with gaps up for yen and the USD and lower for currencies. The risk aversion extended to US equity index futures when Globex opened for the week also.
However, USD/JPY quickly retraced and covered all its move lower, falling just short of 109.00 before drifting lower for the balance of the session as I update. Retracements elsewhere were not quite 100% and vary by currency. CAD and euro are performing better than AUD and NZD.
Japnese shares continued their falls today after Friday's BOJ decision to alter the terms of their ETF buying (the Bank of Japan dropped the 6tln yen target for ETF buys, said they would switch to buying the funds on market selloffs rather than in the more steady fashion they had been employing, and would target the TOPIX).
Bitcoin traded under $56K but has recovered back above $57K.
TRY update:
